2009 instruction 990-pf - internal revenue service · page 1 of 32 instructions for form 990-pf...

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of 32 Instructions for Form 990-PF 16:45 - 4-FEB-2010

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Department of the TreasuryInternal Revenue Service2009

Instructions for Form 990-PFReturn of Private Foundation or Section 4947(a)(1) Nonexempt Charitable TrustTreated as a Private Foundation

you are no longer a publicly supportedSection references are to the Internal Contents Pageorganization.Revenue Code unless otherwise noted. Part V—Qualification Under

Section 4940(e) for Reduced Charitable trusts that became privateContents PageTax on Net Investment Income . . . 18 foundations as a result of section 1241(c)General Instructions

Part VI—Excise Tax Based on of the Pension Protection Act of 2006A. Who Must File . . . . . . . . . . . . . . . . 2Investment Income . . . . . . . . . . . . 18 must file Form 990-PF for taxable yearsB. Which Parts To Complete . . . . . . . . 2

beginning on or after January 1, 2008.Part VII-A—StatementsC. Definitions . . . . . . . . . . . . . . . . . . . 2Such organizations must file a paperRegarding Activities . . . . . . . . . . . 19D. Other Forms You May Need Form 990-PF and write “Notice 2008-6Part VII-B—Activities for WhichTo File . . . . . . . . . . . . . . . . . . . . . . 3 status change” at the top of page 1. SeeForm 4720 May Be Required . . . . . 20E. Useful Publications . . . . . . . . . . . . . 4 Notice 2008-6, 2008-3 I.R.B. 275, forPart VIII—Information About

F. Use of Form 990-PF To more information.Officers, Directors, Trustees,Satisfy State Reporting Foundation Managers, Highly For annual tax periods beginning afterRequirements . . . . . . . . . . . . . . . . . 4 2006, most tax-exempt organizations,Paid Employees, and

G. Furnishing Copies of Form other than churches, are required to fileContractors . . . . . . . . . . . . . . . . . 22990-PF to State Officials . . . . . . . . . 5 an annual Form 990, 990-EZ, or 990-PFPart IX-A—Summary of Direct

H. Accounting Period . . . . . . . . . . . . . 5 with the IRS, or to submit a Form 990-NCharitable Activities . . . . . . . . . . . . 23I. Accounting Methods . . . . . . . . . . . . 5 e-Postcard to the IRS. If an organizationPart IX-B—Summary of

fails to file an annual return or notice asJ. When, Where, and How To Program-Related Investments . . . 24required for 3 consecutive years, it willFile . . . . . . . . . . . . . . . . . . . . . . . . 5 Part X—Minimum Investmentautomatically lose its tax-exempt status.K. Extension of Time To File . . . . . . . . 5 Return . . . . . . . . . . . . . . . . . . . . . 24See General Instruction M.L. Amended Return . . . . . . . . . . . . . . 5 Part XI—Distributable Amount . . . . . 25

M. Penalty for Failure To File Part XII—QualifyingTimely, Completely, or Distributions . . . . . . . . . . . . . . . . . 25 Photographs of MissingCorrectly . . . . . . . . . . . . . . . . . . . . 5 Part XIII—Undistributed Income . . . 26

Part XIV—Private OperatingN. Penalties for Not Paying Tax ChildrenFoundations . . . . . . . . . . . . . . . . . 27on Time . . . . . . . . . . . . . . . . . . . . . 6 The Internal Revenue Service is a proud

Part XV—SupplementaryO. Figuring and Paying partner with the National Center forInformation . . . . . . . . . . . . . . . . . . 28Estimated Tax . . . . . . . . . . . . . . . . 6 Missing and Exploited Children.

Part XVI-A—Analysis of Photographs of missing children selectedP. Tax Payment Methods forIncome-Producing Activities . . . . . . 28 by the Center may appear in instructionsDomestic Private Foundations . . . . 6

Part XVI-B—Relationship of on pages that would otherwise be blank.Q. Public InspectionYou can help bring these children homeActivities to theRequirements . . . . . . . . . . . . . . . . . 7by looking at the photographs and callingAccomplishment of ExemptR. Disclosures Regarding1-800-THE-LOST (1-800-843-5678) if youPurposes . . . . . . . . . . . . . . . . . . . 29Certain Information and recognize a child.Part XVII—InformationServices Furnished . . . . . . . . . . . . . 9

Regarding Transfers To andS. Organizations Organized or Phone HelpTransactions andCreated in a Foreign Country . . . . . . 9Relationships With If you have questions and/or need helpT. Liquidation, Dissolution,

completing this form, please callNoncharitable ExemptTermination, or Substantial 1-877-829-5500. This toll-free telephoneOrganizations . . . . . . . . . . . . . . . . 29Contraction . . . . . . . . . . . . . . . . . . . 9 service is available Monday throughSignature . . . . . . . . . . . . . . . . . . . . 30U. Filing Requirements During Friday.Privacy Act and PaperworkSection 507(b)(1)(B)Reduction Act Notice . . . . . . . . . . . 30Termination . . . . . . . . . . . . . . . . . 10 How To Get Forms andExclusion Codes . . . . . . . . . . . . . . . 31V. Special Rules for Section Index . . . . . . . . . . . . . . . . . . . . . . . . 32 Publications507(b)(1)(B) Terminations . . . . . . . 10

W. Rounding, Currency, and What’s New InternetAttachments . . . . . . . . . . . . . . . . . 10If you are filing Form 990-PF because you You can access the IRS website 24 hoursSpecific Instructionsno longer meet a public support test a day, 7 days a week at www.irs.gov to:Completing the Heading . . . . . . . . . . 10under sections 509(a)(1) and • Download forms, instructions, andPart I—Analysis of Revenue and 170(b)(1)(A)(vi) or section 509(a)(2) and publications,Expenses . . . . . . . . . . . . . . . . . . . 11 you have not previously filed Form • Order IRS products online,

Part II—Balance Sheets . . . . . . . . . . 15 990-PF, check Initial return of a former • See answers to frequently asked taxPart III—Analysis of Changes in public charity in block G of the Entity questions,

Net Assets or Fund Balances . . . . . 17 section on page 1 of your return. Before • Search publications online by topic orPart IV—Capital Gains and filing Form 990-PF for the first time, you keyword,

Losses for Tax on Investment may want to go to www.irs.gov/eo for the • Send us comments or request help viaIncome . . . . . . . . . . . . . . . . . . . . . 17 latest information and filing tips to confirm email, or

Cat. No. 11290Y



• Sign up to receive local and national • To report charitable distributions and • Part X does not apply to foreigntax news by email. activities. foundations that check the box in D2 of

the Entity section on page 1 of FormAlso, Form 990-PF serves as aDVD for tax products 990-PF unless they claim status as asubstitute for the section 4947(a)(1)You can order Publication 1796, IRS Tax private operating foundation.nonexempt charitable trust’s income taxProducts DVD, and obtain: • Parts XI and XIII do not apply to foreignreturn, Form 1041, U.S. Income Tax• Current-year forms, instructions, and foundations that check the box in D2 ofReturn for Estates and Trusts, when thepublications. the Entity section on page 1 of Formtrust has no taxable income.• Prior-year forms, instructions, and 990-PF. However, check the box at thepublications. top of Part XI. Part XI does not apply toA. Who Must File• Tax Map: an electronic research tool private operating foundations. Also, if the

Form 990-PF is an annual informationand finding aid. organization is a private operatingreturn that must be filed by:• Tax Law frequently asked questions. foundation for any of the years shown in• Exempt private foundations (section• Tax Topics from the IRS telephone Part XIII, do not complete the portions6033(a), (b), and (c)),response system. that apply to those years.• Taxable private foundations (section• Internal Revenue Code – Title 26. • Part XIV applies only to private6033(d)),• Fill-in, print, and save features for most operating foundations.• Organizations that agree to privatetax forms. • Part XV applies only to foundationsfoundation status and whose applications• Internal Revenue Bulletins. having assets of $5,000 or more duringfor exempt status are pending on the due• Toll-free and email technical support. the year. This part does not apply todate for filing Form 990-PF,• The DVD is released twice during the certain foreign organizations.• Organizations that made an electionyear.

How to avoid filing an incompleteunder section 41(e)(6),• The first release will ship the beginningreturn.• Foundations that are making a sectionof January 2010.• Complete all applicable line items,507 termination, and• The final release will ship the beginning• Answer “Yes,” “No,” or “N/A” (not• Section 4947(a)(1) nonexemptof March 2010.applicable) to each question on thecharitable trusts treated as private• Purchase the DVD from Nationalreturn,foundations (section 6033(d)).Technical Information Service (NTIS) at• Make an entry (including a zero whenwww.irs.gov/cdorders for $30 (no

Include on the foundation’s return appropriate) on all total lines, andhandling fee) or call 1-877-233-6767 tollthe financial and other information • Enter “None” or “N/A” if an entire partfree to purchase the DVD for $30 (plus aof any disregarded entity owned does not apply.

TIP$6 handling fee).

by the foundation. See RegulationsBy Phone and In Person Sequencing Chart To Completesections 301.7701-1 through 3 for

information on the classification of certainYou can order forms and publications by the Formbusiness organizations including ancalling 1-800-TAX-FORM You may find the following chart helpful. Iteligible entity that is disregarded as an(1-800-829-3676). You can also get most limits jumping from one part of the form toentity separate from its ownerforms and publications at your local IRS another to compute an amount needed to(disregarded entity).office. complete an earlier part. If you complete

the parts in the listed order below, anyUse these electronic options to make Other section 4947(a)(1) nonexemptinformation you may need from anotherfiling and paying easier. charitable trusts. Section 4947(a)(1)part will already be entered.nonexempt charitable trusts not treated

IRS E-Services Make as private foundations do not file FormStep Part Step Part

990-PF. However, they may need to fileTaxes Easier Form 990, Return of Organization Exempt 1 . . . . . . . IV 8 . . . . . . XII, lines 1 – 4Now more than ever before, businesses 2 . . . . . . . I & II 9 . . . . . . V & VIFrom Income Tax, or Form 990-EZ, Short

3 . . . . . . . Heading 10 . . . . . . XII, lines 5 – 6can enjoy the benefits of filing and paying Form Return of Organization Exempt from 4 . . . . . . . III 11 . . . . . . XItheir federal taxes electronically. Whether Income Tax. With either of these forms, 5 . . . . . . . VII-A 12 . . . . . . XIIIyou rely on a tax professional or handle 6 . . . . . . . VIII 13 . . . . . . VII-Bthe trust must also file Schedule A (Form

7 . . . . . . . IX-A – X 14 . . . . . . XIV – XVIIyour own taxes, the IRS offers you 990 or 990-EZ), Public Charity Status andconvenient programs to make taxes Public Support. See Form 990 and Formeasier. 990-EZ instructions. C. Definitions• You can e-file your Form 990-PF, Form940 and 941 employment tax returns, and 1. A private foundation is a domesticB. Which Parts ToForm 1099 and other information returns. or foreign organization exempt fromVisit www.irs.gov/efile for details. Complete income tax under section 501(a),• You can pay taxes online or by phone described in section 501(c)(3), and isThe parts of the form listed below do notusing the free Electronic Federal Tax other than an organization described inapply to all filers. See How to avoid filingPayment System (EFTPS). Visit www. sections 509(a)(1) through (4).an incomplete return on this page foreftps.gov or call 1-800-555-4477 for information on what to do if a part or an In general, churches, hospitals,details. Electronic Funds Withdrawal item does not apply. schools, and broadly publicly supported(EFW) from a checking or savings • Part I, column (c), applies only to organizations are excluded from privateaccount is also available to those who file private operating foundations and to foundation status by these sections.electronically. nonoperating private foundations that These organizations may be required to

For the most up-to-date tax have income from charitable activities. file Form 990 or Form 990-EZ instead ofinformation, please visit us at • Part II, column (c), with the exception of Form 990-PF.www.irs.gov/formspubs/index.html and line 16, applies only to organizations 2. A nonexempt charitable trustselect Highlights of Recent Tax Changes having at least $5,000 in assets per treated as a private foundation is a trustunder the Important Changes section. books at some time during the year. Line that is not exempt from tax under section

16, column (c), applies to all filers. 501(a) and all of the unexpired interests• Part IV does not apply to foreign of which are devoted to religious,General Instructions organizations. charitable, or other purposes described in

Purpose of form. Form 990-PF is used: • Parts V and VI do not apply to section 170(c)(2)(B), and for which a• To figure the tax based on investment organizations making an election under deduction was allowed under a section ofincome, and section 41(e). the Code listed in section 4947(a)(1).

-2- Form 990-PF Instructions



3. A taxable private foundation is an of the method of control. “Control” is the trust does not have any taxableorganization that is no longer exempt determined regardless of how the income under the income tax provisionsunder section 501(a) as an organization foundation requires the contribution to be (subtitle A of the Code), it may use thedescribed in section 501(c)(3). Though it used. filing of Form 990-PF to satisfy its Formmay operate as a taxable entity, it will 1041 filing requirement under sectioncontinue to be treated as a private 6012. If this condition is met, check theD. Other Forms You Mayfoundation until that status is terminated box for question 15, Part VII-A, of Formunder section 507. 990-PF and do not file Form 1041.Need To File

4. A private operating foundation is an Form 1041-ES, Estimated Income Tax• Form W-2, Wage and Tax Statement.organization that is described under for Estates and Trusts. Used to make• Form W-3, Transmittal of Wage andsection 4942(j)(3) or (5). It means any estimated tax payments.Tax Statements.private foundation that spends at least • Form 940, Employer’s Annual Federal Form 1096, Annual Summary and85% of the smaller of its adjusted net Unemployment (FUTA) Tax Return. Transmittal of U.S. Informationincome (figured in Part I) or its minimum • Form 941, Employer’s Quarterly Returns. Used to transmit Forms 1099,investment return (figured in Part X) Federal Tax Return. 1098, 5498, and W-2G to the IRS. Do notdirectly for the active conduct of the These forms are used to report social use it to transmit electronically.exempt purpose or functions for which the security, Medicare, and income taxesfoundation is organized and operated and withheld by an employer and social Form 1098-C, Contributions of Motorthat also meets the assets test, the security and Medicare taxes paid by an Vehicles, Boats, and Airplanes.endowment test, or the support test employer. Information return for reporting(discussed in Part XIV). contributions of qualified motor vehicles,If income, social security, and5. A nonoperating private foundation boats, and airplanes from donors.Medicare taxes that must be withheld areis a private foundation that is not a privatenot withheld or are not paid to the IRS, a Forms 1099-INT, MISC, OID, and R.operating foundation.trust fund recovery penalty may apply. Information returns for reporting certain6. A foundation manager is an officer,The penalty is 100% of such unpaid interest; miscellaneous income (fordirector, or trustee of a foundation, or antaxes. example, payments to providers of healthindividual who has powers similar to

and medical services, miscellaneousthose of officers, directors, or trustees. In This penalty may be imposed on allincome payments, and nonemployeethe case of any act or failure to act, the persons (including volunteers, see below)compensation); original issue discount;term “foundation manager” may also whom the IRS determines to beand distributions from retirement orinclude employees of the foundation who responsible for collecting, accounting for,profit-sharing plans, IRAs, SEPs orhave the authority to act. and paying over these taxes, and whoSIMPLEs, and insurance contracts.7. A disqualified person is any of the willfully did not do so.

following: Form 1120, U.S. Corporation IncomeThis penalty does not apply to anya. A substantial contributor (see Tax Return. Filed by nonexempt taxablevolunteer, unpaid member of any board of

instructions for Part VII-A, line 10, on private foundations that have taxabletrustees or directors of a tax-exemptpage 19). income under the income tax provisionsorganization, if this member:

b. A foundation manager. (subtitle A of the Code). Form 990-PF is• Is solely serving in an honoraryc. A person who owns more than 20% also filed by these taxable foundations.capacity,

of a corporation, partnership, trust, or • Does not participate in the day-to-day Form 1120-POL, U.S. Income Taxunincorporated enterprise that is itself a or financial activities of the organization, Return for Certain Politicalsubstantial contributor. and Organizations. Section 501(c)d. A family member of an individual • Does not have actual knowledge of the organizations must file Form 1120-POL ifdescribed in a, b, or c above. failure to collect, account for, and pay they are treated as having politicale. A corporation, partnership, trust, or over these taxes. organization taxable income under

estate in which persons described in a, b, However, this exception does not apply if section 527(f)(1).c, or d above own a total beneficial it results in no person being liable for the

Form 1128, Application To Adopt,interest of more than 35%. penalty.Change, or Retain a Tax Year. Formf. For purposes of section 4941

Form 990-T, Exempt Organization 1128 is used to request approval from the(self-dealing), a disqualified person alsoBusiness Income Tax Return. Every IRS to change a tax year or to adopt orincludes certain government officials.organization exempt from income tax retain a certain tax year.(See section 4946(c) and the relatedunder section 501(a) with total grossregulations.) Form 2220, Underpayment ofincome of $1,000 or more from all tradesg. For purposes of section 4943 Estimated Tax by Corporations. Formor businesses unrelated to the(excess business holdings), a disqualified 2220 is used by corporations and trustsorganization’s exempt purpose must fileperson also includes: filing Form 990-PF to see if the foundationForm 990-T. The form is also used by

i. A private foundation effectively owes a penalty and to figure the amounttax-exempt organizations to report othercontrolled (directly or indirectly) by the of the penalty. Generally, the foundationadditional taxes including the additionalsame persons who control the private is not required to file this form becausetax figured in Part IV of Form 8621,foundation in question, or the IRS can figure the amount of anyReturn by a Shareholder of a Passive

ii. A private foundation to which penalty and bill the foundation for it.Foreign Investment Company or Qualifiedsubstantially all contributions were made However, complete and attach Form 2220Electing Fund.(directly or indirectly) by one or more of even if the foundation does not owe the

Form 990-W, Estimated Tax onthe persons described in a, b, and c penalty if:Unrelated Business Taxable Incomeabove, or members of their families, • The annualized income or the adjustedfor Tax-Exempt Organizations (and onwithin the meaning of section 4946(d). seasonal installment method is used, orInvestment Income for Private8. An organization is controlled by a • The foundation is a “largeFoundations). Use of this form isfoundation or by one or more disqualified organization,” (see General Instruction O)optional. It is provided only to aid you inpersons with respect to the foundation if computing its first required installmentdetermining your tax liability.any of these persons may, by combining based on the prior year’s tax.

their votes or positions of authority, Form 1041, U.S. Income Tax Return for If Form 2220 is attached, check the boxrequire the organization to make an Estates and Trusts. Required of section on Form 990-PF, page 4, Part VI, line 8expenditure or prevent the organization 4947(a)(1) nonexempt charitable trusts and enter the amount of any penalty onfrom making an expenditure, regardless that also file Form 990-PF. However, if this line.

-3-Form 990-PF Instructions



Form 4506, Request for Copy of Tax transaction (or in two or more related charitable solicitation acts, note theReturn. Used by the organization or transactions) in the course of a trade or following.designated third party to get a complete business (as defined in section 162).

Determine state filing requirements.copy of the organization’s return.Form 8822, Change of Address. Used Consult the appropriate officials of all

Form 4506-A, Request for Public by taxpayers to notify the IRS of changes states and other jurisdictions in which theInspection or Copy of Exempt or in individual and business mailing organization does business to determinePolitical Organization IRS Form. Used addresses. their specific filing requirements. “Doingto inspect or request a copy of an exempt business” in a jurisdiction may includeForm 8886-T, Disclosure byor political organization’s return, report, any of the following:Tax-Exempt Entity Regardingnotice, or exemption application by the • Soliciting contributions or grants byProhibited Tax Shelter Transaction.public or the organization. mail or otherwise from individuals,Used by an exempt organization toForm 4720, Return of Certain Excise businesses, or other charitabledisclose whether it was a party to aTaxes Under Chapters 41 and 42 of the organizations;prohibited tax shelter transaction.Internal Revenue Code. Is primarily • Conducting programs;used to determine the excise taxes Form 8868, Application for Extension • Having employees within thatimposed on: of Time To File an Exempt jurisdiction; or• Acts of self-dealing between private Organization Return. Used by an • Maintaining a checking account orfoundations and disqualified persons, exempt organization to request an owning or renting property there.• Failure to distribute income, automatic 3-month extension of time to• Excess business holdings, file its return and also to apply for an Monetary tests may differ. Some or all• Investments that jeopardize the additional (not automatic) 3-month of the dollar limitations that apply to Formfoundation’s charitable purposes, extension if necessary. 990-PF when filed with the IRS may not• Making political or other noncharitable apply when using Form 990-PF instead ofForm 8870, Information Return forexpenditures, and state or local report forms. IRS dollarTransfers Associated With Certain• Prohibited tax shelter transactions. limitations that may not meet some statePersonal Benefit Contracts. Used to

requirements are the $5,000 total assetsForm 5500, Annual Return/Report of identify those personal benefit contractsminimum that requires completion of PartEmployee Benefit Plan. Is used to for which funds were transferred to theII, column (c), and Part XV; and thereport information concerning employee organization, directly or indirectly, as well$50,000 minimum for listing the highestbenefit plans and Direct Filing Entities. as the transferors and beneficiaries ofpaid employees and for listingForm 8109, Federal Tax Deposit those contracts.professional fees in Part VIII.Coupon. Used by business entities to

Form 8899, Notice of Income frommake federal tax deposits. Additional information may beDonated Intellectual Property. Used toForm 8282, Donee Information Return. required. State and local filingreport income from qualified intellectualRequired of the donee of “charitable requirements may require attaching toproperty.deduction property” that sells, exchanges, Form 990-PF one or more of the

Form 8921. Used by an exemptor otherwise disposes of the property following:organization to report its direct or indirectwithin 3 years after the date it received • Additional financial statements, such asacquisition of certain insurance contracts.the property. Also required of any a complete analysis of functional

successor donee that disposes of expenses or a statement of changes incharitable deduction property within 3 net assets;E. Useful Publicationsyears after the date the donor gave the • Notes to financial statements;The following publications may be helpfulproperty to the original donee. It does not • Additional financial schedules;in preparing Form 990-PF:matter who gave the property to the • A report on the financial statements by• Pub. 525, Taxable and Nontaxablesuccessor donee. It may have been the an independent accountant; andIncome,original donee or another successor • Pub. 583, Starting a Business and • Answers to additional questions anddonee. For successor donees, the form Keeping Records, other information.must be filed only for any property that • Pub. 598, Tax on Unrelated Businesswas transferred by the original donee Each jurisdiction may require theIncome of Exempt Organizations,after July 5, 1988. additional material to be presented on• Pub. 910, IRS Guide to Free TaxForm 8275, Disclosure Statement. forms they provide. The additionalServices,Taxpayers and tax return preparers material does not have to be submitted• Pub. 1771, Charitableshould attach this form to Form 990-PF to with the Form 990-PF filed with the IRS.Contributions—Substantiation anddisclose items or positions (except those Disclosure Requirements, and If required information is not providedcontrary to a regulation—see Form • Pub. 3833, Disaster Relief, Providing to a state, the organization may be asked8275-R below) that are not otherwise Assistance Through Charitable by the state to provide it or to submit anadequately disclosed on the tax return. Organizations. amended return even if the Form 990-PFThe disclosure is made to avoid parts of

is accepted by the IRS as complete.the accuracy-related penalty imposed for Publications and forms are available at nodisregard of rules or substantial charge through IRS offices or by calling Amended returns. If the organizationunderstatement of tax. Form 8275 is also 1-800-TAX-FORM (1-800-829-3676). submits supplemental information or filesused for disclosures relating to preparer an amended Form 990-PF with the IRS, itpenalties for understatements due to must also include a copy of theF. Use of Form 990-PF Tounrealistic positions or for willful or information or amended return to anyreckless conduct. Satisfy State Reporting state with which it filed a copy of FormForm 8275-R, Regulation Disclosure 990-PF.RequirementsStatement. Use this form to disclose any

Method of accounting. Many statesSome states and local government unitsitem on a tax return for which a positionrequire that all amounts be reportedwill accept a copy of Form 990-PF andhas been taken that is contrary tobased on the accrual method ofrequired attachments instead of all or partTreasury regulations.accounting.of their own financial report forms.

Form 8300, Report of Cash PaymentsOver $10,000 Received in a Trade or If the organization plans to use Form Time for filing may differ. The time forBusiness. Used to report cash amounts 990-PF to satisfy state or local filing filing Form 990-PF with the IRS may differin excess of $10,000 received in a single requirements, such as those from state from the time for filing state reports.




If the organization changed itsG. Furnishing Copies of Electronic Filingaccounting period within theThe foundation can file its Form 990-PF10-calendar-year period that includes theForm 990-PF to Stateelectronically. However, if the foundationbeginning of the short period, and it had aOfficials files at least 250 returns during theForm 990-PF filing requirement at anycalendar year, it must file Form 990-PFThe foundation managers must furnish a time during that 10-year period, it mustelectronically. If the foundation must file acopy of Form 990-PF and Form 4720 (if also attach Form 1128 to the short-periodreturn electronically but does not, theapplicable) to the attorney general of: return. See Rev. Proc. 85-58, 1985-2 C.B.organization is considered to have not• Each state required to be listed in Part 740.filed its return. See Regulations sectionVII-A, line 8a;301.6033-4 for more information. For• The state in which the foundation’s I. Accounting Methods additional information on the electronicprincipal office is located; and

Generally, you should report the financial filing requirement, visit www.irs.gov/efile.• The state in which the foundation wasinformation requested on the basis of theincorporated or created. The IRS may waive theaccounting method the foundation

requirements to file electronicallyA copy of the annual return must be regularly uses to keep its books andin cases of undue hardship. Forsent to the attorney general at the same

TIPrecords.

more information on filing a waiver, seetime the annual return is filed with theException. Complete Part I, column (d) Notice 2010-13, I.R.B. 2010-4, availableIRS.on the cash receipts and disbursements at http://www.irs.gov/irb/2010-04_IRB/Other requirements. If the attorney method of accounting. ar14.html.general or other appropriate state official

of any state requests a copy of the annual K. Extension of Time ToJ. When, Where, and Howreturn, the foundation managers mustcomply with the request. FileTo FileExceptions. These rules do not apply to A foundation uses Form 8868 to requestany foreign foundation which, from the an extension of time to file its return.This return must be filed by the 15th daydate of its creation, has received at least of the 5th month following the close of the An automatic 3-month extension will85% of its support (excluding gross foundation’s accounting period. If the be granted if you properly complete thisinvestment income) from sources outside regular due date falls on a Saturday, form, file it, and pay any balance due bythe United States. See General Sunday, or legal holiday, file by the next the due date for Form 990-PF.Instruction S for other exceptions that business day. If the return is filed late, If more time is needed, Form 8868 isaffect this type of organization. see General Instruction M. also used to request an additionalCoordination with state reporting extension of up to 3 months. However,In case of a complete liquidation,requirements. If the foundation these extensions are not automaticallydissolution, or termination, file the returnmanagers submit a copy of Form 990-PF granted. To obtain this additionalby the 15th day of the 5th month followingand Form 4720 (if applicable) to a state extension of time to file, you must showcomplete liquidation, dissolution, orattorney general to satisfy a state reasonable cause for the additional timetermination.reporting requirement, they do not have to requested.furnish a second copy to that attorney To file the return, mail or deliver it to:general to comply with the Internal L. Amended ReturnRevenue Code requirements discussed in

Department of the Treasury To change the organization’s return forthis section.Internal Revenue Service Center any year, file an amended return,

If there is a state reporting requirement Ogden, UT 84201–0027 including attachments, with the correctto file a copy of Form 990-PF with a state information. The amended return mustIf the organization’s principal business,official other than the attorney general (for provide all the information required by theoffice or agency is located in a foreigninstance, the secretary of state), then the form and instructions, not just the new orcountry or U.S. possession, mail orfoundation managers must also send a corrected information. Check “Amendeddeliver the return to:copy of the Form 990-PF and Form 4720 Return” in block G at the top of page 1.(if applicable) to the attorney general of See the instructions for Part VI, line 9, onInternal Revenue Service Centerthat state. page 19.P.O. Box 409101

Ogden, UT 84409 If the organization files an amendedH. Accounting Period return to claim a refund of tax paid underPrivate delivery services. You can useFile the 2009 return for the calendar year section 4940 or 4948, it must file thecertain private delivery services2009 or fiscal year beginning in 2009. If amended return within 3 years after thedesignated by the IRS to meet the “timelythe return is for a fiscal year, fill in the tax date the original return was filed, or withinmailing as timely filing/paying” rule for taxyear space at the top of the return. 2 years from the date the tax was paid,returns and payments. These privatewhichever date is later.The return must be filed on the basis delivery services include only the

of the established annual accounting State reporting requirements. Seefollowing.period of the organization. If the Amended returns under General• DHL Express (DHL): DHL Same Dayorganization has no established Instruction F.Service.accounting period, the return should be • Federal Express (FedEx): FedEx Need a copy of an old return or form?on the calendar-year basis. Priority Overnight, FedEx Standard Use Form 4506 to obtain a copy of a

Overnight, FedEx 2Day, FedEx previously filed return. You can obtainFor initial or final returns or a changeInternational Priority, FedEx International blank forms for prior years by callingin accounting period, the 2009 form mayFirst. 1-800-TAX-FORM (1-800-829-3676).also be used as the return for a short• United Parcel Service (UPS): UPS Nextperiod (less than 12 months) endingDay Air, UPS Next Day Air Saver, UPS M. Penalty for Failure ToNovember 30, 2010, or earlier.2nd Day Air, UPS 2nd Day Air AM, UPS

In general, to change its accounting File Timely, Completely, orWorldwide Express Plus, and UPSperiod, the organization must file Form Worldwide Express. Correctly990-PF by the due date for the shortperiod resulting from the change. At the The private delivery service can tell To avoid filing an incomplete return ortop of this short period return, write you how to get written proof of the mailing having to respond to requests for missing“Change of Accounting Period.” date. information, see General Instruction B.




Against the organization. If an be subject to the estimated tax penalty forN. Penalties for Not Payingorganization does not file timely and the period of the underpayment. Seecompletely, or does not furnish the correct sections 6655(b) and (d) and the FormTax on Timeinformation, it must pay $20 for each day 2220 instructions for further information.There is a penalty for not paying tax whenthe failure continues ($100 a day if it is a due (section 6651). The penalty generally Special Ruleslarge organization), unless it can show is 1/2 of 1% of the unpaid tax for eachthat the failure was due to reasonable Section 4947(a)(1) nonexemptmonth or part of a month the tax remainscause. Those filing late (after the due charitable trusts. Form 1041-ES shouldunpaid, not to exceed 25% of the unpaiddate, including extensions) must attach be used to pay any estimated tax ontax. If there was reasonable cause for notan explanation to the return. The income subject to tax under section 1.paying the tax on time, the penalty can bemaximum penalty for each return will not Form 1041-ES also contains thewaived. However, interest is charged onexceed the smaller of $10,000 ($50,000 estimated tax rules for paying the tax onany tax not paid on time, at the ratefor a large organization) or 5% of the that income.provided by section 6621.gross receipts of the organization for the Taxable private foundations. FormEstimated tax penalty. The sectionyear. 1120-W should be used to figure any6655 penalty for failure to pay estimated

estimated tax on income subject to taxLarge organization. A large tax applies to the tax on net investmentunder section 11. Form 1120-W containsorganization is one that has gross income of domestic private foundationsthe estimated tax rules for paying the taxreceipts exceeding $1 million for the tax and section 4947(a)(1) nonexempton that income.year. charitable trusts. The penalty also applies

to any tax on unrelated business incomeGross receipts. Gross receipts P. Tax Payment Methodsof a private foundation. Generally, if ameans the gross amount received duringprivate foundation’s tax liability is $500 orthe foundation’s annual accounting period for Domestic Privatemore and it did not make the requiredfrom all sources without reduction for anypayments on time, then it is subject to the Foundationscosts or expenses.penalty. Whether the foundation uses theTo figure the foundation’s gross

depository method of tax payment or the For more details, see the discussionreceipts, complete the following:special option for small foundations, itof Form 2220 in General Instruction D.1. Part I, line 12, column (a);must pay the tax due (see Part VI) in full2. Add lines 6b and 10b; andby the 15th day of the 5th month after theO. Figuring and Paying3. Subtract line 6a.end of its tax year.Estimated TaxAgainst the responsible person. TheDepository Method of TaxIRS will make written demand that the A domestic exempt private foundation, aPaymentdelinquent return be filed or the domestic taxable private foundation, or a

information furnished within a reasonable nonexempt charitable trust treated as a Some foundations (described below) aretime after the mailing of the notice of the private foundation must make estimated required to electronically deposit alldemand. The person failing to comply tax payments for the excise tax based on depository taxes, including their taxwith the demand on or before the date investment income if it can expect its payments for the excise tax based onspecified will have to pay $10 for each estimated tax (section 4940 tax minus investment income.day the failure continues, unless there is allowable credits) to be $500 or more. Electronic Deposit Requirementreasonable cause. The maximum penalty The number of installment payments it

The foundation must make electronicimposed on all persons for any one return must make under the depository methoddeposits of all depository taxes (such asis $5,000. If more than one person is is determined at the time during the yearemployment tax or the excise tax basedliable for any failures, all such persons that it first meets this requirement. Foron investment income) using theare jointly and severally liable for such calendar-year taxpayers, the first depositElectronic Federal Tax Payment Systemfailures. See section 6652(c) for further of estimated taxes for a year generally(EFTPS) in 2010 if:information. should be made by May 15 of the year.• The total deposits of such taxes inOther penalties. Because this return Although Form 990-W is used primarily 2008 were more than $200,000, oralso satisfies the filing requirements of a to compute the installment payments of • The foundation was required to usetax return under section 6011 for the tax unrelated business income tax, it is also EFTPS in 2009.on investment income imposed by section used to determine the timing and

If the foundation is required to use4940 (or 4948 if an exempt foreign amounts of installment payments of theEFTPS and fails to do so, it may beorganization), the penalties imposed by section 4940 tax based on investmentsubject to a 10% penalty. If the foundationsection 6651 for not filing a return (without income. Compute separately any requiredis not required to use EFTPS, it mayreasonable cause) also apply. deposits of excise tax based onparticipate voluntarily. To enroll in or getinvestment income and unrelatedThere are also criminal penalties for more information about EFTPS, callbusiness income tax.willful failure to file and for filing fraudulent 1-800-555-4477. To enroll online, visitTo figure the estimated tax for thereturns and statements. See sections http://www.eftps.gov.excise tax based on investment income,7203, 7206, and 7207.Depositing on time. For deposits madeapply the rules of Part VI to your tax year

Most tax-exempt organizations, other by EFTPS to be on time, the foundation2010 estimated amounts for that part.than churches, are required to file an must initiate the transaction at least 1Enter the tax you figured on line 10a ofannual Form 990, 990-EZ, 990-PF, or business day before the date the depositForm 990-W.990-N e-Postcard with the IRS. If an is due.The Form 990-W line items andorganization fails to file an annual return

instructions for large organizations also Deposits With Form 8109or notice for three consecutive years, itapply to private foundations. Forwill automatically lose its tax-exempt If the foundation does not use EFTPS,purposes of paying the estimated tax onstatus. In 2010, automatic revocations will deposit estimated tax payments and anynet investment income, a “largestart for organizations not filing for the balance due for the excise tax based onorganization” is one that had netthird consecutive year. A private investment income with Form 8109,investment income of $1 million or morefoundation that loses its exemption must Federal Tax Deposit Coupon. If you dofor any of the 3 tax years immediatelyfile income tax returns and pay income not have a preprinted Form 8109, usepreceding the tax year involved.taxes and must file Form 990-PF as a Form 8109-B to make deposits. You can

taxable private foundation. For details, go Penalty. A foundation that does not pay get this form only by callingto www.irs.gov/eo. the proper estimated tax when due may 1-800-829-4933. Be sure to have your




Determining if a site is a regional oremployer identification number (EIN) • Form 990-PF, including all schedules,district office. A regional or districtready when you call. attachments, and supporting documents,office is any office of a private foundation,and any amended return that is 3 or fewerDo not send deposits directly to an IRSother than its principal office, that hasyears old from:office; otherwise, the foundation maypaid employees whose total number of1. The date the original return washave to pay a penalty. Mail or deliver thepaid hours a week are normally 120 hoursfiled or required to be filed, orcompleted Form 8109 with the paymentor more. Include the hours worked by2. The date the return was required toto an authorized depositary, such as apart-time (as well as full-time) employeesbe filed.commercial bank or other financialin making that determination.• Form 990-T, if it was used to report anyinstitution authorized to accept federal tax

tax on unrelated business income.deposits. What sites are not considered aregional or district office. A site is notMake checks or money orders payable Exemption application. An application considered a regional or district office if:to the depositary. To help ensure proper for tax exemption includes (except as

1. The only services provided at thecrediting, write the foundation’s EIN, the described later):site further the foundation’s exempttax period to which the deposit applies, • Any prescribed application form (suchpurposes (for example, day care, healthand “Form 990-PF” on the check or as Form 1023 or Form 1024),care, or scientific or medical research),money order. Be sure to darken the • All documents and statements the IRSand990-PF box on the coupon. Records of requires an applicant to file with the form,

2. The site does not serve as an officethese deposits will be sent to the IRS. • Any statement or other supportingfor management staff, other thandocument submitted in support of theThe Financial Agent cannot processmanagers who are involved only inapplication, andforeign checks. If you send a checkmanaging the exempt function activities at• Any letter or other document issued bywritten on a foreign bank to pay a federalthe site.the IRS concerning the application.tax deposit, you generally will be charged

a deposit penalty and will receive a bill in What if the private foundation does notAn application for tax exemption doesthe mail. For more information, see How maintain a permanent office? If thenot include:to deposit with a FTD coupon in Pub. 15 private foundation does not maintain a• Any application for tax exemption filed(Circular E). permanent office, it will comply with thebefore July 15, 1987, unless the privateFor more information on deposits, see public inspection by office visitationfoundation filing the application had a

the instructions in the coupon booklet requirement by making the annual returnscopy of the application on July 15, 1987,(Form 8109) and Pub. 583, Starting a and exemption application available at aorBusiness and Keeping Records. reasonable location of its choice. It must• Any material that is not available for

permit public inspection:public inspection under section 6104.Special Payment Option for • Within a reasonable amount of timeSmall Foundations Who Must Make the Annual after receiving a request for inspectionA private foundation may enclose a check (normally, not more than 2 weeks), andReturns and Exemptionor money order, payable to the United • At a reasonable time of day.Application Available for PublicStates Treasury, with the Form 990-PF or

Optional method of complying. If aInspection?Form 8868, if it meets all of the followingprivate foundation that does not have aThe foundation’s Form 990-PF, 990-T,requirements:permanent office wishes not to allow anand exemption application must be made1. The foundation must not be inspection by office visitation, it may mailavailable to the public by the foundationrequired to use EFTPS, a copy of the requested documentsand the IRS.2. The tax based on investment instead of allowing an inspection.

income shown on line 5, Part VI of Form However, it must mail the documentsHow Does a Private Foundation990-PF is less than $500, and within 2 weeks of receiving the requestMake Its Annual Returns and3. If Form 8868 is used, the amount and may charge for copying and postageExemption Applicationentered on line 3a of Part I or line 8a of only if the requester consents to thePart II of Form 8868 must be less than Available for Public Inspection? charge.$500 and it must be the full balance due. A private foundation must make its annual Private foundations with a

returns and exemption application permanent office but limited or noBe sure to write “2009 Form 990-PF” available in two ways: hours. Even if a private foundation has aand the foundation’s name, address, and • By office visitation, and permanent office but no office hours orEIN on its check or money order. • By providing copies or making them very limited hours during certain times ofwidely available.Foreign organizations should see the year, it must still meet the office

the instructions for Part VI, line 9. visitation requirement. To meet thisPublic Inspection by OfficeCAUTION!

requirement during those periods whenVisitation office hours are limited or not available,A private foundation must make its annualQ. Public Inspection follow the rules above under What if thereturns and exemption application private foundation does not maintain aRequirements available for public inspection without permanent office?

A private foundation must make its annual charge at its principal, regional, andPublic Inspection—Providingreturns and exemption application district offices during regular business

available for public inspection. Copieshours.A private foundation must provide copiesBecause Form 990-PF is Conditions that may be set for publicof its annual returns or exemptiondisclosed to the public, do not inspection at the office. A privateapplication to any individual who makes areport personal information about foundation:CAUTION

!request for a copy in person or in writinggrantees or others that is not required and • May have an employee present,unless it makes these documents widelycould be used for identity theft purposes, • Must allow the individual conductingavailable.such as a social security number or bank the inspection to take notes freely during

account information. the inspection, and In-person requests for document• Must allow an individual to make copies. A private foundation mustDefinitions photocopies of documents at no charge provide copies to any individual who

Annual returns. Annual returns include but only if the individual brings makes a request in person at the privatean exact copy of the following documents photocopying equipment to the place of foundation’s principal, regional, or districtas filed with the IRS. inspection. offices during regular business hours on




What forms of payment must thethe same day that the individual makes If an advance payment is required,private foundation accept? The form ofthe request. copies must be provided within 30 dayspayment depends on whether the requestfrom the date payment is received.

Accepted delay in fulfilling an for copies is made in person or in writing.in-person request. If unusual If the private foundation requires

Cash and money order must becircumstances exist and fulfilling a payment in advance and it receives aaccepted for in-person requests forrequest on the same day places an request without payment or withdocument copies. The private foundation,unreasonable burden on the private insufficient payment, it must notify theif it wishes, may accept additional formsfoundation, it must provide copies by the requester of the prepayment policy andof payment.earlier of: the amount due within 7 days from the

• The next business day following the date it receives the request. Certified check, money order, andday that the unusual circumstances end, either personal check or credit card mustA request that is transmitted to theor be accepted for written requests forprivate foundation by email or fax is• The fifth business day after the date of document copies. The private foundation,considered received the day the requestthe request. if it wishes, may accept additional formsis transmitted successfully. of payment.Examples of unusual circumstances

Requested documents can be emailed Other fee information. If a privateinclude:instead of the traditional method of foundation provides a requester with• Receipt of a volume of requests (formailing if the requester consents to this notice of a fee and the requester does notdocument copies) that exceeds themethod. pay the fee within 30 days, it may ignoreprivate foundation’s daily capacity to

the request.make copies, A document copy is considered as• Requests received shortly before the If a requester’s check does not clearprovided on the:end of regular business hours that require on deposit, it may ignore the request.• Postmark date,an extensive amount of copying, or • Private delivery date, If a private foundation does not require• Requests received on a day when the • Registration date for certified or prepayment and the requester does notorganization’s managerial staff capable of registered mail, prepay, the private foundation mustfulfilling the request is conducting official • Postmark date on the sender’s receipt receive consent from the requester if theduties (for instance, student registration for certified or registered mail, or copying and postage chargeor attending an off-site meeting or • Day the email is successfully exceeds $20.convention) instead of its regular transmitted (if the requester agreed to thisadministrative duties. Private foundations subject to amethod).

harassment campaign. If the IRSUse of local agents for providing Requests for parts of a document determines that a private foundation iscopies. A private foundation may use a copy. A person can request all or any being harassed, it is not required tolocal agent to handle in-person requests specific part or schedule of the annual comply with any request for copies that itfor document copies. If a private returns or exemption application, and the reasonably believes is part of thefoundation uses a local agent, it must private foundation must fulfill their request harassment campaign.immediately provide the local agent’s for a copy. A group of requests for a privatename, address, and telephone number tofoundation’s annual returns or exemptionCan an agent be used to providethe requester.application is indicative of a harassmentcopies? A private foundation can use an

The local agent must: campaign if the requests are part of aagent to provide document copies for the• Be located within reasonable proximity single coordinated effort to disrupt thewritten requests it receives. However, theto the principal, regional, or district office operations of the private foundation ratheragent must provide the document copieswhere the individual makes the request; than to collect information about it.under the same conditions imposed onand the private foundation itself. Also, if an See Regulations section• Provide document copies within the agent fails to provide the documents as 301.6104(d)-3 for more information.same time frames as the private required, the private foundation willfoundation. Requests that may be disregardedcontinue to be subject to penalties.

without IRS approval. A privateWritten requests for document copies. Example. The ABC Foundation foundation may disregard any request forIf a private foundation receives a written retained an agent to provide copies for all copies of all or part of any documentrequest for a copy of its annual returns or written requests for documents. However, beyond the first two received within anyexemption application (or parts of these ABC Foundation received a request for 30-day period or the first four receiveddocuments), it must give a copy to the document copies before the agent did. within any 1-year period from the samerequester. However, this rule only applies individual or the same address.if the request: The deadline for providing a response• Is addressed to a private foundation’s is referenced by the date the ABC Making the Annual Returns andprincipal, regional, or district office; Foundation received the request and not Exemption Application Widely• Is delivered to that address by mail, when the agent received it. If the agent Availableelectronic mail (email), facsimile (fax), or received the request first, then a

A private foundation does not have toa private delivery service approved by the response would be referenced to the dateprovide copies of its annual returns and/orIRS (see Private delivery services on the agent received it.its exemption application if it makes thesepage 5 for a list); anddocuments widely available. However, itCan a fee be charged for providing• Gives the address to which themust still allow public inspection by officecopies? A private foundation maydocument copies should be sent.visitation.charge a reasonable fee for providing

How and when a written request is copies. Also, it can require the fee to be How does a private foundation makefulfilled. Requested document copies paid before providing a copy of the its annual returns and exemptionmust be mailed within 30 days from the requested document. application widely available? A privatedate the private foundation receives the foundation’s annual returns and/orWhat is a reasonable fee? A fee isrequest. exemption application is widely availablereasonable only if it is no more than the

if it meets all four of the followingUnless other evidence exists, a mailed per-page copying fee charged by the IRSrequirements:request or payment is considered to be for providing copies, plus no more than

received by the private foundation 7 days the actual postage costs incurred to 1. Internet posting requirement—after the postmark date. provide the copies. This is met if:




• The document is posted on a World make the exemption application available securities loans as defined in sectionWide Web page that the private for public inspection. 512(a)(5), and royalties not reported onfoundation establishes and maintains, or Form 990-T) of an exempt foreign privateAny person who willfully fails to comply

foundation. This tax replaces the section• The document is posted as part of a with the section 6104(d) public inspection4940 tax on the net investment income ofdatabase of like documents of other requirements is subject to an additionala domestic private foundation. To pay anytax-exempt organizations on a World penalty of $5,000.tax due, see the instructions for Part VI,Wide Web page established and

Requirements Placed on the line 9.maintained by another entity.IRS2. Additional posting information Taxable foreign private foundations

requirement—This is met if: A private foundation’s Form 990-PF, and foreign section 4947(a)(1) nonexempt• The World Wide Web page through 990-T, and approved exemption charitable trusts are not subject to thewhich the document is available clearly application may be inspected by the excise taxes under sections 4948(a) andinforms readers that the document is public at an IRS office for your area or at 4940, but are subject to income tax underavailable and provides instructions for the IRS National Office in Washington, subtitle A of the Code.downloading the document; DC.

Certain foreign foundations are not• After it is downloaded and viewed, To request a copy or to inspect a Form required to send copies of annual returnsthe web document exactly reproduces the 990-PF, 990-T, or an approved exemption to state officials, or comply with the publicimage of the annual returns or exemption application, complete Form 4506-A. inspection and notice requirements ofapplication as it was originally filed with Generally, there is a charge for annual returns. (See General Instructionsthe IRS, except for any information photocopying. G and Q.)permitted by statute to be withheld fromAlso, the IRS can provide a completepublic disclosure; and

set of Forms 990-PF filed for a year on• Any individual with access to the T. Liquidation, Dissolution,CD and/or DVD. A partial set of FormsInternet can access, download, view, and990-PF filed by state or by month is also Termination, orprint the document without specialavailable. Call 1-877-829-5500 or write tocomputer hardware or software required Substantial Contractionthe address below for details.for that format (except software that is If there is a liquidation, dissolution,readily available to members of the public Internal Revenue Service termination, or substantial contractionwithout payment of any fee) and without RAIVS Unit MS:6716 (defined below) of the organization, attachpayment of a fee to the private foundation Ogden, UT 84201 the following to the filing.or to another entity maintaining the web • A statement to the returnpage. R. Disclosures Regarding explaining it.

3. Reliability and accuracy • A certified copy of the liquidation plan,Certain Information andrequirements—To meet this, the entity resolution, etc. (if any) and allmaintaining the World Wide Web page Services Furnished amendments or supplements that weremust: not previously filed.A section 501(c) organization that offers• Have procedures for ensuring the • A schedule that lists the names andto sell or solicits money for specificreliability and accuracy of the document addresses of all recipients of assets.information or a routine service to anythat it posts on the page; • An explanation of the nature and fairindividual that could be obtained by the• Take reasonable precautions to market value of the assets distributed toindividual from a Federal Governmentprevent alteration, destruction, or each recipient.agency free or for a nominal charge mustaccidental loss of the document when disclose that fact conspicuously when Additional requirements. For aposted on its page; and making such offer or solicitation. complete corporate liquidation or trust• Correct or replace the document if a

Any organization that intentionally termination, attach a statement as toposted document is altered, destroyed, ordisregards this requirement will be subject whether a final distribution of assets waslost.to a penalty for each day the offers or made and the date it was made (if4. Notice requirement—To meet this,solicitations are made. The penalty is the applicable).a private foundation must notify anygreater of $1,000 or 50% of the total costindividual requesting a copy of its annual Also, an organization must indicate:of the offers and solicitations made onreturns and/or exemption application • That it has ceased to exist and checkthat day.where the documents are available Final return in block G of the Entity

(including the Internet address). If the section on page 1 of the return, orS. Organizationsrequest is made in person, the private • That it is terminating its privatefoundation must notify the individual foundation status under sectionOrganized or Created in aimmediately. If the request is in writing, it 507(b)(1)(B), according to GeneralForeign Countrymust notify the individual within 7 days of Instructions U and V, orreceiving the request. If you apply any provision of any U.S. tax • That it is voluntarily terminating its

treaty to compute the foundation’s taxable private foundation status under sectionincome, tax liability, or tax credits in a 507(a)(1) and owes a termination tax andPenaltiesmanner different from these instructions, send the notice (and tax payment, ifA penalty may be imposed on any person attach an explanation. applicable) required by Rev. Rul.who does not make the annual returns 2003-13, 2003-4 I.R.B. 305, and Rev.Regulations section 53.4948-1(b)(including all required attachments to Rul. 2002-28, 2002-20, I.R.B. 941states that sections 507, 508, andeach return) or the exemption application (2002-1 C.B., 941) to the Manager,Chapter 42 (other than section 4948) doavailable for public inspection according Exempt Organizations Determinations, atnot apply to a foreign private foundationto the section 6104(d) rules discussed the address given in General Instructionthat from the date of its creation hasabove. If more than one person fails to U.received at least 85% of its support (ascomply, each person is jointly anddefined in section 509(d), other thanseverally liable for the full amount of the Relief from public inspectionsection 509(d)(4)) from sources outsidepenalty. The penalty amount is $20 for requirements. If the organization hasthe United States.each day during which a failure occurs. terminated its private foundation status

The maximum penalty that may be Section 4948(a) imposes a 4% tax on under section 507(b)(1)(A), it does notimposed on all persons for any one the gross investment income from U.S. have to comply with the notice and publicannual return is $10,000. There is no sources (such as income from dividends, inspection requirements of the return formaximum penalty amount for failure to interest, rents, payments received on the termination year.




Filing date. See General Instruction J it has become. See the Instructions for If you have to add two or morefor the filing date. Form 990 and Schedule A (Form 990 or amounts to figure the amount to enter on

990-EZ) for details on filing requirements. a line, include cents when adding theDefinitions. The term substantialThis applies even if the IRS has not amounts and round off only the total.contraction includes any partial liquidationconfirmed that the organization hasor any other significant disposition of Currency and language requirements.terminated its private foundation status byassets. However, this does not include Report all amounts in U.S. dollars. Statethe time the return for the final year of thetransfers for full and adequate the conversion rate used. Report all itemstermination is due (or would be due if aconsideration or distributions of current in total, including amounts from both U.S.return were required).income. and non-U.S. sources. All information

must be in English.The organization will be allowed aA significant disposition of assets doesreasonable period of time to file any Attachments. Use the schedules onnot include any disposition for a tax yearprivate foundation returns required (for Form 990-PF. If you need more space,if:the last year of the termination period) but use attachments that are the same size1. The total of the dispositions for the not previously filed if it is later determined as the printed forms.tax year is less than 25% of the fair that the organization did not terminate itsmarket value of the net assets of the On each attachment, write:private foundation status. Interest on anyorganization at the beginning of the tax • “Form 990-PF,”tax due will be charged from the originalyear, and • The tax year,due date of Form 990-PF, but penalties2. The total of the related dispositions • The corresponding schedule number orunder sections 6651 and 6652 will not bemade during prior tax years (if a letter,assessed if Form 990-PF is filed withindisposition is part of a series of related • The organization’s name and EIN, andthe period allowed by the IRS.dispositions made during these prior tax • The information requested using the

years) is less than 25% of the fair market format and line sequence of the printedV. Special Rules forvalue of the net assets of the organization form.at the beginning of the tax year in which Also, show totals on the printed forms.Section 507(b)(1)(B)any of the series of related dispositions Terminationwas made.

If the organization is terminating its Specific InstructionsThe facts and circumstances of the private foundation status under theparticular case will determine whether a 60-month provisions of sectionsignificant disposition has occurred 507(b)(1)(B), special rules apply. See Completing the Headingthrough a series of related dispositions. General Instructions T and U. Under The following instructions are keyed toOrdinarily, a distribution described in these rules, the organization may file items in the Form 990-PF Entity section.section 170(b)(1)(F)(ii) (relating to private Form 990-PF without paying the taxfoundations making qualifying based on investment income if it filed a Name and Addressdistributions out of corpus equal to 100% consent under section 6501(c)(4) with its If the organization operates under a nameof contributions received during the notification to the TE/GE Customer different from its legal name, give thefoundation’s tax year) will not be taken Account Services at the Cincinnati legal name of the organization but identifyinto account as a significant disposition of address given in General Instruction U of its alternate name, after the legal name,assets. See Regulations section its intention to begin a section by writing “aka”(also known as) and the1.170A-9(h)(2). 507(b)(1)(B) termination. The consent alternate name of the organization. The

provides that the period of limitation on address used must be that of the principalU. Filing Requirements the assessment of tax under Chapter 42, office of the foundation.based on investment income for any taxDuring Section Include the suite, room, or other unityear in the 60-month period, will not

number after the street address. If theexpire until at least 1 year after the period507(b)(1)(B) Termination post office does not deliver mail to thefor assessing a deficiency for the last taxAlthough an organization terminating its street address and the organization has ayear in which the 60-month period wouldprivate foundation status under section P.O. box, show the box number instead ofnormally expire. Any foundation not507(b)(1)(B) may be regarded as a public the street address.paying the tax when it files Form 990-PFcharity for certain purposes, it ismust attach a copy of the signed consent. A—Employer Identificationconsidered a private foundation for filing

If the foundation did not file therequirement purposes and must file an Numberconsent, the tax must be paid in theannual return on Form 990-PF. The return The organization should have only onenormal manner as explained in Generalmust be filed for each year in the employer identification number (EIN). If itInstructions O and P. The organization60-month termination period, if that period has more than one EIN, notify the Internalmay file a claim for refund afterhas not expired before the due date of the Revenue Service Center at the addresscompleting termination or during thereturn. shown under General Instruction J.termination period. The claim for refund Explain what numbers the organizationRegulations under section 507(b)(1)must be filed on time and the organization has, the name and address to which each(B)(iii) specify that within 90 days after themust supply information establishing that number was assigned, and the address ofend of the termination period theit qualified as a public charity for the the organization’s principal office. Theorganization must supply information toperiod for which it paid the tax. IRS will then advise which number to use.the IRS establishing that it has terminated

its private foundation status and, as a B—Telephone NumberW. Rounding, Currency,result, qualifies as a public charity. SendEnter a foundation telephone numberthe information to: and Attachments (including the area code) that the public

Internal Revenue Service Rounding off to whole dollars. You and government regulators may use toTE/GE–EO Determinations may round off cents to whole dollars on obtain information about the foundation’sP.O. Box 2508 your return and schedules. If you do finances and activities. This informationCincinnati, OH 45201 round to whole dollars, you must round all should be available at this telephoneIf information is furnished establishing amounts. To round, drop amounts under number during normal business hours. If

a successful termination, then, for the 50 cents and increase amounts from 50 the foundation does not have afinal year of the termination period, the to 99 cents to the next dollar. For telephone, enter a telephone number of aorganization should comply with the filing example, $1.39 becomes $1 and $2.50 foundation official who can provide thisrequirements for the type of public charity becomes $3. information during normal business hours.




(a) that applies to investment income.D2—Foreign Organizations Part I—Analysis of However, do not include in column (b)If the foreign organization meets the 85%any income and related expensesRevenue and Expensestest of Regulations section 53.4948-1(b),reported on Form 990-T.then: Column Instructions• Check the box in D2 on page 1 of Form For example, investment income fromThe total of amounts in columns (b), (c),990-PF, debt-financed property unrelated to theand (d) may not necessarily equal the• Check the box at the top of Part XI, organization’s charitable purpose andamounts in column (a).• Do not fill in Parts XI and XIII, certain rents (and related expenses)• Do not fill in Part X unless it is claiming The amounts entered in column (a) treated as unrelated trade or businessstatus as a private operating foundation, and on line 5b must be analyzed in Part income should be reported on Formand XVI-A. 990-T. Income from debt-financed• Attach the computation of the 85% test property that is not taxed under sectionColumn (a)—Revenue andto Form 990-PF. 511 is taxed under section 4940. Thus, ifExpenses per Books the debt/basis percentage of aE—Section 507(b)(1)(A) Enter in column (a) all items of revenue debt-financed property is 80%, only 80%Terminations and expense shown in the books and of the gross income (and expenses) for

records that increased or decreased theA private foundation that has terminated that property is used to figure the sectionnet assets of the organization. However,its private foundation status under section 511 tax on Form 990-T. The remainingdo not include the value of services507(b)(1)(A), by distributing all its net 20% of the gross income (and expenses)donated to the foundation or items suchassets to one or more public charities of that property is used to figure theas free use of equipment or facilities inwithout keeping any right, title, or interest section 4940 tax on net investmentcontributions received. Also, do notin those assets, should check this box. income on Form 990-PF. (See Forminclude any expenses used to computeSee General Instructions Q and T. 990-T and its instructions for morecapital gains and losses on lines 6, 7, and information.)8 or expenses included in cost of goodsF—60-Month Terminationsold on line 10b. Investment expenses. Include inUnder Section 507(b)(1)(B)

column (b) all ordinary and necessaryCheck this box if the organization is Column (b)— Net Investment expenses paid or incurred to produce orterminating its private foundation status Income collect investment income from interest,under the 60-month provisions of section All domestic private foundations dividends, rents, amounts received from507(b)(1)(B) during the period covered by (including section 4947(a)(1) nonexempt payments on securities loans (as definedthis return. To begin such a termination, a charitable trusts) are required to pay an in section 512(a)(5)), royalties, incomeprivate foundation must have given excise tax each tax year on net from notional principal contracts,advance notice to TE/GE at the Cincinnati investment income. annuities, substantially similar incomeaddress given on page 10 and providedfrom ordinary and routine investments,Exempt foreign foundations arethe information outlined in Regulationsand income from similar sources; or forsubject to an excise tax on grosssection 1.507-2T(b)(3). See Generalthe management, conservation, orinvestment income from U.S. sources.Instruction U for information regardingmaintenance of property held for theThese foreign organizations shouldfiling requirements during a sectionproduction of income that is taxable undercomplete lines 3, 4, 5, 11, 12, and 27b of507(b)(1)(B) termination.section 4940.column (b) and report only income

See General Instruction V for derived from U.S. sources. No otherIf any of the expenses listed in columninformation regarding payment of the tax income should be included. No expenses

(a) are paid or incurred for bothbased on investment income (computed are allowed as deductions.investment and charitable purposes, theyin Part VI) during a section 507(b)(1)(B) Definitions must be allocated on a reasonable basistermination.

Gross investment income. Gross between the investment activities and theinvestment income is the total amount of charitable activities so that only expensesH—Type of Organizationinvestment income that was received by a from investment activities appear inCheck the box for “Section 501(c)(3)private foundation from all sources. column (b). Examples of allocationexempt private foundation” if theHowever, it does not include any income methods are given in the instructions forfoundation has a ruling or determinationsubject to the unrelated business income Part IX-A.letter from the IRS in effect thattax. It includes interest, dividends, rents,recognizes its exemption from federal Limitation. The deduction forpayments with respect to securities loansincome tax as an organization described expenses paid or incurred in any tax year(as defined in section 512(a)(5)), royaltiesin section 501(c)(3) or if the organization’s for producing gross investment incomereceived from assets devoted toexemption application is pending with the earned incident to a charitable functioncharitable activities, income from notionalIRS. cannot be more than income earned fromprincipal contracts (as defined in

the function includible as grossRegulations section 1.863-7), annuities,Check the “Section 4947(a)(1)investment income for the year.substantially similar income from ordinarynonexempt charitable trust” box if the

and routine investments, and income fromtrust is a nonexempt charitable trustFor example, if rental income issimilar sources. Therefore, interesttreated as a private foundation. All others,

incidentally realized in 2009 from historicreceived on a student loan is includible incheck the “Other taxable privatebuildings held open to the public,the gross investment income of a privatefoundation” box.deductions for amounts paid or incurredfoundation making the loan.in 2009 for the production of this incomeI—Fair Market Value of All Net investment income. Net may not be more than the amount ofAssets investment income is the amount by rental income includible as grosswhich the sum of gross investmentIn block I on page 1 of Form 990-PF, investment income in column (b) for 2009.income and the capital gain net incomeenter the fair market value of all assets

exceeds the allowable deductionsthe foundation held at the end of the tax Expenses related to tax-exemptdiscussed later. Tax-exempt interest onyear. interest. Do not include on lines 13–23governmental obligations and related of column (b) any expenses paid orexpenses are excluded.This amount should be the same incurred that are allocable to tax-exempt

as the figure reported in Part II, Investment income. Include in column interest that is excluded from lines 3line 16, column (c).

TIP(b) all or part of any amount from column and 4.




Nonoperating private foundations. schedule must include all the specificColumn (c)—Adjusted Net IncomeThe following rules apply to nonoperating items of lines 13–25, and the total fromprivate foundations. the schedule must be entered on line 26,Nonoperating private foundations• If a nonoperating private foundation column (d).should see Nonoperating privatehas no income from charitable activitiesfoundations, later, to find out if

TIPLine Instructionsthat would be reportable on line 10 or linethey need to complete column (c).

11 of Part I, it does not have to make any Line 1—Contributions, gifts, grants,Private operating foundations. All entries in column (c). etc., received. Enter the total of grossorganizations that claim status as private • If a nonoperating private foundation contributions, gifts, grants, and similaroperating foundations under section has income from charitable activities, it amounts received.4942(j)(3) or (5) must complete all lines of must report that income only on lines 10 Schedule B (Form 990, 990-EZ, orcolumn (c) that apply, according to the and/or 11 in column (c). These 990-PF). If money, securities, or othergeneral rules for income and expenses foundations do not need to report other property valued at $5,000 or more wasthat apply to this column, the specific line kinds of income and expenses (such as received directly or indirectly from anyinstructions for lines 3–27c, the special investment income and expenses) in one person during the year, completerule below, and examples 1 and 2 below. column (c). Schedule B and attach it to the return. IfGeneral rules. In general, adjusted net • If a nonoperating private foundation the foundation is not required to completeincome is the amount of a private has income that it reports on lines 10 and/ Schedule B (no person contributedfoundation’s gross income that is more or 11, report any expenses relating to this $5,000 or more), be sure to check the boxthan the expenses of earning the income. income following the general rules and on line 2.The modifications and exclusions the special rule above. See examples 1

To determine whether a person hasexplained below are applied to gross and 2 above.contributed $5,000 or more, total onlyincome and expenses in figuring adjusted Column (d)—Disbursements for gifts of $1,000 or more from each person.net income.

Charitable Purposes Separate and independent gifts need notFor income and expenses, include on be totaled if less than $1,000. If aExpenses entered in column (d) relate toeach line of column (c) only that portion of contribution is in the form of property,activities that constitute the charitablethe amount from column (a) applicable to describe the property and include its fairpurpose of the foundation.the adjusted net income computation. market value.For amounts entered in column (d):Income. For column (c), include The term “person” includes individuals,• Use the cash receipts and

income from charitable functions, fiduciaries, partnerships, corporations,disbursements method of accounting noinvestment activities, short-term capital associations, trusts, and exemptmatter what accounting method is used ingains from investments, amounts set organizations.keeping the books of the foundation;aside, and unrelated trade or business • Do not include any amount or part of an Split-interest trusts. Distributionsactivities. Do not include gifts, grants or amount included in column (b) or (c); from split-interest trusts should becontributions, or long-term capital gains or • Include on lines 13–25 all expenses, entered on line 1, column (a). They are alosses. including necessary and reasonable part of the amount on line 1.

administrative expenses, paid by theExpenses. Deductible expenses Substantiation requirements. Anfoundation for religious, charitable,include the part of a private foundation’s organization must keep records, asscientific, literary, educational, or otheroperating expenses paid or incurred to required by the regulations under sectionpublic purposes, or for the prevention ofproduce or collect gross income reported 170.cruelty to children or animals;on lines 3–11 of column (c). If only part of Generally, a donor making a charitable• Include a distribution of property at thethe property produces income includible contribution of $250 or more will not befair market value on the date thein column (c), deductions such as allowed a federal income tax deductiondistribution was made; andinterest, taxes, and rent must be divided unless the donor obtains a written• Include only the part entered in columnbetween the charitable and noncharitable acknowledgment from the donee(a) that is allocable to the charitableuses of the property. If the deductions for organization by the earlier of the date onpurposes of the foundation.property used for a charitable, which the donor files a tax return for theeducational, or other similar purpose are Example. An educational seminar tax year in which the contribution wasmore than the income from the property, produced $1,000 in income that was made or the due date, includingthe excess will not be allowed as a reportable in columns (a) and (c). extensions, for filing that return. However,deduction but may be treated as a Expenses attributable to this charitable see section 170(f)(8)(D) and Regulationsqualifying distribution in Part I, column (d). activity were $1,900. Only $1,000 of section 1.170A-13(f) for exceptions to thisSee Examples 1 and 2 below. expense should be reported in column (c) rule.and the remaining $900 in expenseSpecial rule. The expenses attributable The written acknowledgment theshould be reported in column (d).to each specific charitable activity, limited foundation provides to the donor mustQualifying distributions. Generally,by the amount of income from the activity, show:gifts and grants to organizationsmust be reported in column (c) on lines

1. The amount of cash contributed,described in section 501(c)(3) that have13–26. If the expenses of any charitable2. A description of any propertybeen determined to be publicly supportedactivity exceed the income generated by

contributed,charities, for example, organizations thatthat activity, only the excess of these3. Whether the foundation providedare not private foundations as defined inexpenses over the income should be

any goods or services to the donor, andsection 509(a), are qualifying distributionsreported in column (d).4. A description and a good-faithonly if the granting foundation does notExamples. estimate of the value of any goods orcontrol the public charity.

services the foundation gave in return for1. A charitable activity generatedThe total of the expenses and the contribution, unless:$5,000 of income and $4,000 ofdisbursements on line 26 is alsoexpenses. Report all income and a. The goods and services haveentered on line 1a in Part XII toexpenses in column (c) and none in

TIPinsubstantial value, or

figure qualifying distributions.column (d). b. A statement is included that these2. A charitable activity generated Alternative to completing lines 13–25. goods and services consist solely of

$5,000 of income and $6,000 of If you want to provide an analysis of intangible religious benefits.expenses. Report $5,000 of income and disbursements that is more detailed than$5,000 of expenses in column (c) and the column (d), you may attach a schedule Generally, if a charitable organizationexcess expenses of $1,000 in column (d). instead of completing lines 13–25. The solicits or receives a contribution of more




Line 5a—Gross rents.than $75 for which it gives the donor 1. Amounts received or accrued assomething in return (a quid pro quo repayments of amounts taken intoIn column (a). Enter the gross rentalcontribution), the organization must account as qualifying distributions;income for the year from investmentinform the donor, by written statement, 2. Amounts received or accrued fromproperty reportable in Part II, line 11.that the amount of the contribution the sale or other disposition of property to

In columns (b) and (c). Enter thedeductible for federal income tax the extent that the acquisition of thegross rental income from column (a).purposes is limited to the amount by property was considered a qualifying

which the contribution exceeds the value distribution for any tax year;Line 5b—Net rental income or (loss).of the goods or services received by the 3. Any amount set aside for a specificFigure the net rental income or (loss) fordonor. The written statement must also project (see explanation in thethe year and enter that amount on theprovide the donor with a good-faith instructions for Part XII) that was notentry line to the left of column (a).estimate of the value of goods or services necessary for the purposes for which it

Report rents from other sources ongiven in return for the contribution. was set aside;line 11. Enter any expenses attributable 4. Income received from an estate,Penalties. An organization that does to the rental income reported on line 5, but only if the estate was considerednot make the required disclosure for each such as interest and depreciation, on terminated for income tax purposes duequid pro quo contribution will incur a lines 13–23. to a prolonged administration period; andpenalty of $10 for each failure, not toLine 6a—Net gain or (loss) from sale 5. Amounts treated in an earlier taxexceed $5,000 for a particular fundraisingof assets. Enter the net gain or (loss) year as qualifying distributions to:event or mailing, unless it can showper books from all asset sales notreasonable cause for not providing the • A nonoperating private foundation if theincluded on line 10.disclosure. amounts were not redistributed by the

For assets sold and not included in grantee organization by the close of itsFor more information. SeePart IV, attach a schedule showing: tax year following the year in which itRegulations section 1.170A-13 for more• Date acquired, received the funds, orinformation on charitable recordkeeping• Manner of acquisition, • An organization controlled by theand substantiation requirements.• Gross sales price, distributing foundation or a disqualifiedLine 2. Check this box if the foundation • Cost, other basis, or value at time of person if the amounts were notis not required to attach Schedule B. acquisition (if donated) and which of redistributed by the grantee organization

Line 3—Interest on savings and these methods was used, by the close of its tax year following thetemporary cash investments. • Date sold, year in which it received the funds.

• To whom sold,In column (a). Enter the total amount Lines 10a, b, c— Gross profit from• Expense of sale and cost ofof interest income from investments sales of inventory. Enter the grossimprovements made subsequent toreportable in Part II, line 2. These include sales (less returns and allowances), costacquisition, andsavings or other interest-bearing accounts of goods sold, and gross profit or (loss)• Depreciation since acquisition (ifand temporary cash investments, such as from the sale of all inventory items,depreciable property).money market funds, commercial paper, including those sold in the course of

certificates of deposit, and U.S. Treasury Line 6b—Gross sales price for all special events and activities. Thesebills or other government obligations that assets on line 6a. Enter the gross sales inventory items are the ones themature in less than 1 year. price from all asset sales whose net gain organization either makes to sell to others

In column (b). Enter the amount of or loss was reported on line 6a. or buys for resale.interest income shown in column (a). Do Do not report any sales or exchangesLine 7—Capital gain net income.not include interest on tax-exempt of investments on line 10.Enter the capital gain net income fromgovernment obligations. Part IV, line 2. See Part IV instructions. Do not include any profit or (loss) fromIn column (c). Enter the amount of the sale of capital items such asLine 8—Net short-term capital gain.interest income shown in column (a). securities, land, buildings, or equipmentInclude interest on tax-exempt Only private operating foundations on line 10. Enter these amounts ongovernment obligations. report their short-term capital line 6a.

gains on line 8.Line 4—Dividends and interest fromTIP

Do not include any business expensessecurities. such as salaries, taxes, rent, etc., on lineInclude only net short-term capital gainIn column (a). Enter the amount of 10. Include them on lines 13–23.for the year (assets sold or exchanged

dividend and interest income from that were held not more than 1 year). Do Attach a schedule showing thesecurities (stocks and bonds) reportable not include net long-term capital gain or following items: gross sales, cost ofin Part II, line 10. Include amounts net loss in column (c). goods sold, gross profit or (loss). Thesereceived from payments on securitiesitems should be classified according toDo not include on line 8 a net gainloans as defined in section 512(a)(5). Dotype of inventory sold (such as books,from the sale or exchange of depreciablenot include any capital gain dividendstapes, other educational or religiousproperty, or land used in a trade orreportable on line 6. Report income frommaterial, etc.). The totals from thebusiness (section 1231) and held forprogram-related investments on line 11.schedule should agree with the entries onmore than 1 year. However, include netFor debt instruments with an originallines 10a–10c.loss from such property on line 23 as anissue discount, report the original issue

Other expense. In column (c), enter the gross profit ordiscount ratably over the life of the bond(loss) from sales of inventory shown onon line 4. See section 1272 for more In general, foundations may carry toline 10c, column (a).information. line 8 the net short-term capital gain

reported in Part IV, line 3. However, if the Line 11—Other income. Enter the totalIn column (b). Enter the amount offoundation had any short-term capital of all the foundation’s other income for thedividend and interest income andgain from sales of debt-financed property, year. Attach a schedule that gives apayments on securities loans fromadd it to the amount reported in Part IV, description and the amount of the income.column (a). Do not include interest online 3 to figure the amount to include on Include all income not reported on lines 1tax-exempt government obligations.line 8. For the definition of “debt-financed through 10c. Also, see the instructions forIn column (c). Enter the amount ofproperty,” see the Instructions for Form Part XVI-A, line 11 later.dividend and interest income and990-T.payments on securities loans from Include imputed interest on certain

column (a). Include interest on Line 9—Income modifications. Include deferred payments figured under sectiontax-exempt government obligations. on this line: 483 and any investment income not




reportable on lines 3 through 5, including fees. On the appropriate line(s), enter straight line method of computingincome from program-related investments the legal, accounting, auditing, and other depreciation. A deduction for depletion is(defined in the instructions for Part IX-B). professional fees (such as fees for allowed but must be figured only using

fundraising or investment services) the cost depletion method.Do not include unrealized gains andcharged by outside firms and individuals The basis used in figuring depreciationlosses on investments carried at marketwho are not employees of the foundation. and depletion is the basis determinedvalue. Report those as fund balance or

Attach a schedule for lines 16a, b, and under normal basis rules, without regardnet asset adjustments in Part III.c. Show the type of service and expense to the special rules for using the fairIn column (b). Enter the amount offor each. If the same person provided market value on December 31, 1969, thatinvestment income included in line 11,more than one of these services, include relate only to gain or loss on dispositionscolumn (a). Include dividends, interest,an allocation of those expenses. for purposes of the tax on net investmentrents, and royalties derived from assets

income.Report any fines, penalties, ordevoted to charitable activities, such asLine 20—Occupancy. Enter thejudgments imposed against theinterest on student loans.amount paid or incurred for the use offoundation as a result of legalIn column (c). Include all other itemsoffice space or other facilities. If the spaceproceedings on line 23.includible in adjusted net income notis rented or leased, enter the amount ofLine 18—Taxes. Attach a schedulecovered elsewhere in column (c).rent. If the space is owned, enter thelisting the type and amount of each taxLine 12—Total. In column (b). amount of mortgage interest, real estatereported on line 18. Do not enter anyDomestic organizations should enter the taxes, and similar expenses, but nottaxes included on line 15.total of lines 3–11. Exempt foreign depreciation reportable on line 19. InIn column (a). Enter the taxes paidorganizations should enter the total of either case, include the amount for(or accrued) during the year. Include alllines 3, 4, 5, and 11 only. utilities and related expenses (fortypes of taxes recorded on the books,Line 13—Compensation of officers, example, heat, lights, water, power,including real estate tax not reported ondirectors, trustees, etc. telephone, sewer, trash removal, outsideline 20; the tax on investment income; janitorial services, and similar services).In column (a). Enter the total and any income tax. Do not include any salaries of thecompensation for the year of all officers,

In column (b). Enter only those taxes organization’s own employees reportabledirectors, and trustees. If none was paid,included in column (a) related to on line 14.enter zero. Complete line 1 of Part VIII toinvestment income taxable under sectionshow the compensation of officers, Line 21—Travel, conferences, and4940. Do not include the section 4940 taxdirectors, trustees, and foundation meetings. Enter the expenses forpaid or incurred on net investment incomemanagers. officers, employees, or others during theor the section 511 tax on unrelated year for travel, attending conferences,In columns (b), (c), and (d). Enter business income. Sales taxes may not be meetings, etc. Include transportationthe portion of the compensation included deducted separately but must be treated (including fares, mileage allowance, orin column (a) that is applicable to the as a part of the cost of acquired property automobile expenses), meals andcolumn. For example, in column (c) enter or as a reduction of the amount realized lodging, and related costs whether paidthe portion of the compensation included on disposition of the property. on the basis of a per diem allowance orin column (a) paid or incurred to produce

In column (c). Enter only those taxes actual expenses incurred. Do not includeor collect income included in column (c).included in column (a) that relate to any compensation paid to those whoLine 14—Other employee salaries and income included in column (c). Do not participate.wages. Enter the salaries and wages of include any excise tax paid or incurred on In column (b). Only 50% of theall employees other than those included the net investment income (as shown in expense for business meals, etc., paid oron line 13. Part VI) or any tax reported on Form incurred in connection with travel,Line 15—Contributions to employee 990-T. meetings, etc., relating to the productionpension plans and other benefits. In column (d). Do not include any of investment income may be deducted inEnter the employer’s share of excise tax paid on investment income (as figuring net investment income (sectioncontributions the organization paid to reported in Part VI of this return or the 274(n)).qualified and nonqualified pension plans equivalent part of a return for prior years) In column (c). Enter the total amountand the employer’s share of contributions unless the organization is claiming status of expenses paid or incurred by officers,to employee benefit programs (such as as a private operating foundation and employees, or others for travel,insurance, health, and welfare programs) completes Part XIV. conferences, meetings, etc., related tothat are not an incidental part of a Line 19—Depreciation and depletion. income included in column (c).pension plan. Complete the return/report

In column (a). Enter the expenseof the Form 5500 series appropriate for Line 22—Printing and publications.recorded in the books for the year.the organization’s plan. See the Enter the expenses for printing or

Instructions for Form 5500 for information publishing and distributing anyFor depreciation, attach a scheduleabout employee welfare benefit plans newsletters, magazines, etc. Also includeshowing:required to file that form. the cost of subscriptions to, or purchases• A description of the property,

of, magazines, newspapers, etc.• The date acquired,Also include the amount of federal,• The cost or other basis (exclude any Line 23—Other expenses. Enter allstate, and local payroll taxes for the year,land), other expenses for the year. Include allbut only include those that are imposed• The depreciation allowed or allowable expenses not reported on lines 13–22.on the organization as an employer. Thisin prior years, Attach a schedule showing the type andincludes the employer’s share of social• The method of computation, amount of each expense.security and Medicare taxes, FUTA tax,• The rate (%) or life (years), andstate unemployment compensation tax, If a deduction is claimed for• The depreciation this year.and other state and local payroll taxes. amortization, attach a schedule showing:

Do not include taxes withheld from On a separate line on the schedule, • Description of the amortized expenses;employees’ salaries and paid over to the show the amount of depreciation included • Date acquired, completed, orvarious governmental units (such as in cost of goods sold and not included on expended;federal and state income taxes and the line 19. • Amount amortized;employee’s share of social security and In columns (b) and (c). A deduction • Deduction for prior years;Medicare taxes). for depreciation is allowed only for • Amortization period (number ofLines 16a, b, and c—Legal, property used in the production of income months);accounting, and other professional reported in the column, and only using the • Current-year amortization; and




• Total amount of amortization. The difference between fair line 26 from line 12 and enter the result.market value and book value Exempt foreign organizations should

In column (c). In addition to the should be shown in the books of enter the amount shown on line 12.TIP

applicable portion of expenses from account and as a net asset adjustment in However, if the organization is a domesticcolumn (a), include any net loss from the Part III. organization and line 26 is more than linesale or exchange of land or depreciable 12 (such as when expenses exceedIn column (d). Enter on line 25 allproperty that was held for more than income), enter zero (not a negativecontributions, gifts, and grants the1 year and used in a trade or business. amount).foundation paid during the year with the

A deduction for amortization is allowed Line 27c—Adjusted net income.following exceptions.but only for assets used for the production Subtract line 26, column (c) from line 12,• Do not include contributions toof income reported in column (c). column (c) and enter the result.organizations controlled by the foundation

or by a disqualified person (see GeneralLine 25—Contributions, gifts, grantsInstruction C for definitions). Part II—Balance Sheetspaid. • Do not include contributions to For column (b), show the book value atnonoperating private foundations unlessIn column (a). Enter the total of all the end of the year. For column (c), showthe donees are exempt from tax undercontributions, gifts, grants, and similar the fair market value at the end of thesection 501(c)(3), they redistribute theamounts paid (or accrued) for the year. year. Attached schedules must show thecontributions, and they maintain sufficientList each contribution, gift, grant, etc., in end-of-year value for each asset listed inevidence of redistributions according toPart XV, or attach a schedule of the items columns (b) and (c).the regulations under section 4942(g).included on line 25 and list:

Foundations whose books of account• Do not include contributions paid from1. Each class of activity, included total assets of $5,000 or more ata nonoperating private foundation to a2. A separate total for each activity, any time during the year must completeType III supporting organization as3. Name and address of donee, all of columns (a), (b), and (c).defined under section 4943(f)(5) that is4. Relationship of donee if related by: not a functionally integrated Type III Foundations with less than $5,000 of

supporting organization as defined undera. Blood, total assets per books at all times duringsection 4943(f)(5)(B). See Noticeb. Marriage, the year must complete all of columns (a)2006-109, 2006-51 I.R.B. 1121, available and (b) and only line 16 of column (c).c. Adoption, orat www.irs.gov/irb/2006-51_IRB/index.d. Employment (including children of Line 1—Cash—Non-interest-bearing.html.employees) to any disqualified person Enter the amount of cash on deposit in• Do not include contributions paid from(see General Instruction C for definitions), checking accounts, deposits in transit,a nonoperating private foundation to anyand change funds, petty cash funds, or anysupporting organization if a disqualified

other non-interest-bearing account. Do5. The organizational status of donee person of the private foundation controlsnot include advances to employees or(for instance, public charity—an the supporting organization or any of itsofficers or refundable deposits paid toorganization described in section supported organizations. See Noticesuppliers or others.509(a)(1), (2), or (3)). 2006-109.Line 2—Savings and temporary cash• Do not reduce the amount of grants

You do not have to give the name of investments. Enter the total of cash inpaid in the current year by the amount ofany indigent person who received one or savings or other interest-bearing accountsgrants paid in a prior year returned ormore gifts or grants from the foundation and temporary cash investments, such asrecovered in the current year. Reportunless that individual is a disqualified money market funds, commercial paper,those repayments on line 9, column (c),person or one who received a total of certificates of deposit, and U.S. Treasuryand in Part XI, line 4.more than $1,000 from the foundation bills or other governmental obligations• Do not include any payments ofduring the year. that mature in less than 1 year.set-asides (see instructions for Part XII,

line 3) taken into account as qualifying Line 3—Accounts receivable. On theActivities should be classified distributions in the current year or any dashed lines to the left of column (a),according to purpose and in greater detail prior year. All set-asides are included in enter the year-end figures for totalthan merely classifying them as qualifying distributions (Part XII, line 3) in accounts receivable and allowance forcharitable, educational, religious, or the year of the set-aside, regardless of doubtful accounts from the sale of goodsscientific activities. For example, use when paid. and/or the performance of services. Inidentification such as payments for • Do not include current year write-offs of columns (a), (b), and (c), enter netnursing service, for fellowships, or for prior years’ program-related investments. amounts (total accounts receivableassistance to indigent families. All program-related investments are reduced by the corresponding allowanceincluded in qualifying distributions (PartFoundations may include, as a single for doubtful accounts). Claims againstXII, line 1b) in the year the investment isentry on the schedule, the total of vendors or refundable deposits withmade.amounts paid as grants for which the suppliers or others may be reported here• Do not include any payments that arefoundation exercised expenditure if not significant in amount. (Otherwise,not qualifying distributions as defined inresponsibility. Attach a separate report for report them on line 15.) Any receivablessection 4942(g)(1).each grant. due from officers, directors, trustees,

foundation managers, or otherNet AmountsWhen the fair market value of the disqualified persons must be reported onproperty at the time of disbursement is Line 27a—Excess of revenue over line 6. Report receivables (including loansthe measure of a contribution, the expenses. Subtract line 26, column (a), and advances) due from other employeesschedule must also show: from line 12, column (a) and enter the on line 15.• A description of the contributed result. Generally, the amount shown in Line 4—Pledges receivable. On theproperty, column (a) on this line is also the amount dashed lines to the left of column (a),• The book value of the contributed by which net assets (or fund balances) enter the year-end figures for totalproperty, have increased or decreased for the year. pledges receivable and allowance forSee the instructions for Part III, Analysis• The method used to determine the doubtful accounts (pledges estimated toof Changes in Net Assets or Fundbook value, be uncollectible). In columns (a), (b), andBalances.• The method used to determine the fair (c), enter net amounts (total pledgesmarket value, and Line 27b—Net investment income. receivable reduced by the corresponding• The date of the gift. Domestic organizations should subtract allowance for doubtful accounts).




Line 5—Grants receivable. Enter the receivable not listed on line 6 and not market value of these assets. Attach atotal grants receivable from governmental acquired as investments. Attach a schedule listing these investment fixedagencies, foundations, and other schedule similar to the one for line 6. The assets held at the end of the year andorganizations as of the beginning and end schedule should also identify the showing, for each item or category listed,of the year. relationship of the borrower to any officer, the cost or other basis, accumulated

director, trustee, foundation manager, or depreciation, and book value.Line 6—Receivables due from officers,other disqualified person.directors, trustees, and other Line 12—Investments—mortgage

disqualified persons. Enter here (and loans. Enter the amount of mortgageFor a note receivable from any sectionon an attached schedule described loans receivable held as investments but501(c)(3) organization, list only the namebelow) all receivables due from officers, do not include program-relatedof the borrower and the balance due ondirectors, trustees, foundation managers, investments (see instructions for line 15).the required schedule.and other disqualified persons and all Line 13—Investments—other. EnterLoans receivable. In columns (a),secured and unsecured loans (including the amount of all other investment(b), and (c), enter the gross amount ofadvances) to such persons. Disqualified holdings not reported on lines 10 throughloans receivable, minus the allowance forperson is defined in General 12. Attach a schedule listing anddoubtful accounts, from the normalInstruction C. describing each of these investments heldactivities of the filing organization (such

Attached schedules. (a) On the at the end of the year. Show the bookas scholarship loans). An itemized list ofrequired schedule, report each loan value for each and indicate whether thethese loans is not required, but attach aseparately, even if more than one loan investment is listed at cost or end-of-yearschedule showing the total amount ofwas made to the same person or the market value. Do not includeeach type of outstanding loan. Reportsame terms apply to all loans made. program-related investments (seeloans to officers, directors, trustees,

instructions for line 15).foundation managers, or otherSalary advances and other advancesdisqualified persons on line 6 and loans to Line 14—Land, buildings, andfor the personal use and benefit of theother employees on line 15. equipment. On the dashed lines to therecipient and receivables subject to

left of column (a), enter the year-end bookspecial terms or arising from transactions Line 8—Inventories for sale or use.value (cost or other basis) andnot functionally related to the foundation’s Enter the amount of materials, goods, andaccumulated depreciation of all land,charitable purposes must be reported as supplies purchased or manufactured bybuildings, and equipment owned by theseparate loans for each officer, director, the organization and held for sale or useorganization and not held for investment.etc. in some future period.In columns (a) and (b), enter the book(b) Receivables that are subject to Line 9—Prepaid expenses andvalue of all land, buildings, and equipmentthe same terms and conditions (including deferred charges. Enter the amount ofnot held for investment less accumulatedcredit limits and rate of interest) as short-term and long-term prepayments ofdepreciation. In column (c), enter the fairreceivables due from the general public expenses attributable to one or moremarket value of these assets. Include anyfrom an activity functionally related to the future accounting periods. Examplesproperty, plant, and equipment ownedfoundation’s charitable purposes may be include prepayments of rent, insurance,and used by the organization to conductreported as a single total for all the and pension costs, and expensesits charitable activities. Attach a scheduleofficers, directors, etc. Travel advances incurred in connection with a solicitationlisting these fixed assets held at the endmade for official business of the campaign to be conducted in a futureof the year and showing the cost or otherorganization may also be reported as a accounting period.basis, accumulated depreciation, andsingle total. Lines 10a, b, and c—Investments— book value of each item or category

For each outstanding loan or other government obligations, corporate listed.receivable that must be reported stocks and bonds. Enter the book

Line 15—Other assets. List and showseparately, the attached schedule should value (which may be market value) ofthe book value of each category of assetsshow the following information (preferably these investments.not reportable on lines 1 through 14.using columns): Attach a schedule that lists each Attach a separate schedule if more space

1. Borrower’s name and title, security held at the end of the year and is needed.2. Original amount, shows whether the security is listed at

One type of asset reportable on line 153. Balance due, cost (including the value recorded at theis program-related investments. These4. Date of note, time of receipt in the case of donatedare investments made primarily to5. Maturity date, securities) or end-of-year market value.accomplish a charitable purpose of the6. Repayment terms, Do not include amounts shown on line 2.filing organization with no significant7. Interest rate, Governmental obligations reported on linepurpose to produce income.8. Security provided by the borrower, 10a are those that mature in 1 year or

9. Purpose of the loan, and Line 16—Total assets. All filers mustmore. Debt securities of the U.S.10. Description and fair market value of complete line 16 of columns (a), (b), andGovernment may be reported as a single

the consideration furnished by the lender (c). These entries represent the totals oftotal rather than itemized. Obligations of(for example, cash—$1,000; or 100 lines 1 through 15 of each column.state and municipal governments mayshares of XYZ, Inc., common stock— However, foundations that have assets ofalso be reported as a lump-sum total. Do$9,000). less than $5,000 per books at all timesnot combine U.S. Government obligations

during the year need not complete lines 1with state and municipal obligations onThe above detail is not required for through 15 of column (c).this schedule.

receivables or travel advances that mayLine 11—Investments—land, The column (c) amount is alsobe reported as a single total (see (b)buildings, and equipment. On the entered on the entry space for I inabove); however, report and identifydashed lines to the left of column (a), the Entity section on page 1.those totals separately on the attachment.

TIP

enter the year-end book value (cost orLine 7—Other notes and loans Line 17—Accounts payable andother basis) and accumulatedreceivable. On the dashed lines to the accrued expenses. Enter the total ofdepreciation of all land, buildings, andleft of column (a), enter the combined accounts payable to suppliers and othersequipment held for investment purposes,total year-end figures for notes receivable and accrued expenses, such as salariessuch as rental properties. In columns (a)and loans receivable and the allowance payable, accrued payroll taxes, andand (b), enter the book value of all land,for doubtful accounts. interest payable.buildings, and equipment held for

Notes receivable. In columns (a), investment less accumulated Line 18—Grants payable. Enter the(b), and (c), enter the amount of all notes depreciation. In column (c), enter the fair unpaid portion of grants and awards the




organization has made a commitment to or that resources be used for a specified the amount for total assets reported onpay other organizations or individuals, purpose (purpose restrictions), or both. line 16 for both the beginning and end ofwhether or not the commitments have the year.Line 26—Permanently restricted.been communicated to the grantees. Enter the total of the balances for the

Part III—Analysis ofpermanently restricted class of netLine 19—Deferred revenue. Includeassets. Permanently restricted net assetsrevenue that the organization has Changes in Net Assets orare (a) assets, such as land or works ofreceived but not yet earned as of theart, donated with stipulations that they be Fund Balancesbalance sheet date under its method ofused for a specified purpose, beaccounting. Generally, the excess of revenue overpreserved, and not be sold or (b) assets expenses accounts for the differenceLine 20—Loans from officers, donated with stipulations that they be between the net assets at the beginningdirectors, trustees, and other invested to provide a permanent source and end of the year.disqualified persons. Enter the unpaid of income. The latter result from gifts and

balance of loans received from officers, On Part III, line 2, re-enter the figurebequests that create permanentdirectors, trustees, and other disqualified from Part I, line 27(a), column (a).endowment funds.persons. For loans outstanding at the end

On lines 3 and 5, list any changes inFoundations that do not follow SFASof the year, attach a schedule that showsnet assets that were not caused by the117. If the foundation does not follow(for each loan) the name and title of thereceipts or expenses shown in Part I,SFAS 117, check the box above line 27lender and the information listed in itemscolumn (a). For example, if a foundationand report account balances on lines 272 through 10 of the instructions for line 6follows FASB Statement No. 12 andthrough 29. Report net assets or fundabove.shows an asset in the ending balancebalances on line 30. Also complete line

Line 21—Mortgages and other notes sheet at a higher value than in the31 to report the sum of the total liabilitiespayable. Enter the amount of mortgages beginning balance sheet because of anand net assets/fund balances.and other notes payable at the beginning increased market value (after a largerLine 27—Capital stock, trust principal,and end of the year. Attach a schedule decrease in a prior year), include theor current funds. For corporations,showing, as of the end of the year, the increase in Part III, line 3.enter the balance per books for capitaltotal amount of all mortgages payable If the organization uses a stepped-upstock accounts. Show par or stated valueand, for each nonmortgage note payable, basis to determine gains on sales of(or for stock with no par or stated value,the name of the lender and the other assets included in Part I, column (a), thentotal amount received upon issuance) ofinformation specified in items 2 through include the amount of step-up in basis inall classes of stock issued and, as yet,10 of the instructions for line 6. The Part III. If you entered a contribution, gift,uncancelled. For trusts, enter the amountschedule should also identify the or grant of property valued at fair marketin the trust principal or corpus account.relationship of the lender to any officer, value in Part I, line 25, column (a), theFor foundations continuing to use thedirector, trustee, foundation manager, or difference between fair market value andfund method of accounting, enter the fundother disqualified person. book value should be shown in the booksbalances for the foundation’s currentLine 22—Other liabilities. List and of account and as a net asset adjustmentrestricted and unrestricted funds.show the amount of each liability not in Part III.Line 28—Paid-in or capital surplus, orreportable on lines 17 through 21. Attach land, building, and equipment fund.a separate schedule if more space is Part IV—Capital Gains andEnter the balance per books for all paid-inneeded. capital in excess of par or stated value for Losses for Tax onall stock issued and uncancelled. IfLines 24 Through 31—Net

stockholders or others gave donations Investment IncomeAssets or Fund Balances that the organization records as paid-in Use Part IV to figure the amount of netcapital, include them here. Report anyFoundations that follow SFAS 117. If capital gain to report on lines 7 and 8 ofcurrent-year donations you included onthe foundation follows SFAS 117, check Part I.line 28 in Part I, line 1. The fund balancethe box above line 24. Classify and report

Part IV does not apply to foreignfor the land, building, and equipment fundnet assets in three groups—unrestricted,organizations.would be entered here.temporarily restricted, and permanently

restricted—based on the existence or Nonoperating private foundations mayLine 29—Retained earnings,absence of donor-imposed restrictions not have to figure their short-term capitalaccumulated income, endowment, orand the nature of those restrictions. Show gain or loss on line 3. See Nonoperatingother funds. For corporations, enter thethe sum of the three classes of net assets private foundations on page 12.balance in the retained earnings, oron line 30. On line 31, add the amounts similar account, minus the cost of any Reportable gains and losses. Capitalon lines 23 and 30 to show total liabilities corporate treasury stock. For trusts, enter gains or losses include gains or lossesand net assets. This figure should be the the balance per books in the accumulated from the sale or other disposition ofsame as the figure for total assets on line income or similar account. For property that:16. foundations using fund accounting, enter • Is used for a charitable purpose,

the total of the fund balances for theLine 24—Unrestricted. Enter the • Is held for investment, orpermanent and term endowment funds asbalances per books of the unrestricted • Is used in the production of income. Dowell as balances of any other funds notclass of net assets. Unrestricted net not include the gain or loss that isreported on lines 27 and 28.assets are neither permanently restricted included in figuring the foundation’s

nor temporarily restricted by unrelated business taxable income.Line 30—Total net assets or funddonor-imposed stipulations. All funds balances. For foundations that follow However, do not include gains orwithout donor-imposed restrictions must SFAS 117, enter the total of lines 24 losses for any portion of property if:be classified as unrestricted, regardless through 26. For all other foundations, • The property was used for 1 year orof the existence of any board enter the total of lines 27 through 29. more in furthering the foundation’sdesignations or appropriations. Enter the beginning-of-year figure in Part exempt purpose or function, and

III, line 1. The end-of-year figure inLine 25—Temporarily restricted. Enter • Immediately following the use, iscolumn (b) must agree with the figure inthe balances per books of the temporarily exchanged for property of like kind that isPart III, line 6.restricted class of net assets. Donors’ to be used primarily in furthering the

temporary restrictions may require that Line 31—Total liabilities and net foundation’s exempt purpose or function.resources be used in a later period or assets/fund balances. Enter the total of Rules similar to the rules of section 1031after a specified date (time restrictions), lines 23 and 30. This amount must equal relating to exchange of property held for




productive use or investment apply. See Taxable foreign private foundationsPart V—QualificationGross Investment Income on page 11. that filed Form 1040NR, U.S. NonresidentAlien Income Tax Return, or FormUnder Section 4940(e) forBasis. The basis for determining gain 1120-F, U.S. Income Tax Return of a

from the sale or other disposition of Reduced Tax on Net Foreign Corporation, enterproperty is the larger of: “N/A” in Part VI.Investment Income• The fair market value of the property on

Estimated tax. Domestic exempt andThis part is used by domestic privateDecember 31, 1969, plus or minus alltaxable private foundations and sectionfoundations (exempt and taxable) toadjustments after December 31, 1969,4947(a)(1) nonexempt charitable trustsdetermine whether they qualify for theand before the date of disposition, if themay have to make estimated taxreduced 1% tax under section 4940(e) onfoundation held the property on that datepayments for the excise tax based onnet investment income rather than the 2%and continuously after that date untilinvestment income. See Generaltax on net investment income underdisposition, orInstruction O for more information.section 4940(a).• The basis of the property on the date of

disposition under normal basis rules Do not complete Part V if this is the Tax Computation(actual basis). See Code sections organization’s first year. A private1011–1021. foundation cannot qualify under section Line 1a only applies to domestic

4940(e) for its first year of existence, nor exempt operating foundationsThe rules that generally apply tocan a former public charity qualify for the described in section 4940(d)(2)CAUTION

!property dispositions reported in this part

first year it is treated as a private that have a ruling or determination letterare:foundation. from the IRS establishing exempt• Section 1011, adjusted basis for

operating foundation status. If yourdetermining gain or loss; A separate computation must be madeorganization does not have this letter,• Section 1012, basis of property-cost; for each year in which the foundationskip line 1a.• Section 1014, basis of property wants to qualify for the reduced tax.

acquired from a decedent; Line 1a. A domestic exempt privateLine 1, column (b). Enter the amount of• Section 1015, basis of property foundation that qualifies as an exemptadjusted qualifying distributions made foracquired by gifts and transfers in trust; operating foundation under sectioneach year shown. The amounts in columnand 4940(d)(2) is not liable for any tax on net(b) are taken from Part XII, line 6 of the• Section 1016, adjustments to basis. investment income on this return.Form 990-PF for 2004–2008.

If your organization qualifies, check theTo figure a loss, basis on the date of Line 1, column (c). Enter the net valuebox and enter the date of the ruling ordisposition is determined under normal of noncharitable-use assets for each year.determination letter on line 1a and enterbasis rules. The amounts in column (c) are taken from“N/A” on line 1. Leave the rest of Part VlPart X, line 5, for 2004–2008.Losses. If the disposition of blank. For the first year, the organization

investment property results in a loss, that must attach a copy of the ruling orPart VI—Excise Tax Basedloss may be subtracted from capital gains determination letter establishing exemptrealized from the disposition of property operating foundation status. As long ason Investment Incomeduring the same tax year but only to the the organization retains this status, write(Section 4940(a), 4940(b),extent of the gains. If losses are more the date of the ruling or determinationthan gains, the excess may not be letter in the space on line 1a. If the4940(e), or 4948)subtracted from gross investment income organization no longer qualifies undernor may the losses be carried back or section 4940(d)(2), leave the date lineGeneral Rulesforward to other tax years. blank and compute the section 4940 tax

Domestic exempt private foundations. in the normal manner.These foundations are subject to a 2%Reporting Transactions on Part Qualification. To qualify as antax on net investment income underIV exempt operating foundation for a taxsection 4940(a). However, certain exempt

year, an organization must meet the Publicly traded securities. For sales of operating foundations described infollowing requirements of sectionpublicly traded securities through a section 4940(d)(2) may not owe any tax,4940(d)(2).broker, enter the description “publicly and certain private foundations that meet • It is an operating foundation describedtraded securities” on line 1, column (a). the requirements of section 4940(e) mayin section 4942(j)(3).Leave columns (b), (c), and (d) blank. qualify for a reduced tax of 1% (see the • It has been publicly supported for atTotal the gross sales price, the cost or Part V instructions).least 10 tax years or was a privateother basis, and the expense of sale on Exception. The section 4940 tax operating foundation on January 1, 1983,all such securities sold. Report these

does not apply to an organization making or for its last tax year ending beforelump-sum figures in columns (e) throughan election under section 41(e)(6). Enter January 1, 1983.(l), as appropriate. You must maintain“N/A” in Part VI. • Its governing body, at all times duringdetailed records of each transaction inDomestic taxable private foundations the tax year, consists of individuals lessyour books and records.and section 4947(a)(1) nonexempt than 25% of whom are disqualified

Publicly traded securities are securities charitable trusts. These organizations individuals and is broadly representativethat are listed and regularly traded on an are subject to a modified 2% tax on net of the general public.over-the-counter market or an established investment income under section 4940(b). • It has no officer who was a disqualifiedexchange in which market quotations are (See Part V and its instructions to find out individual at any time during the tax year.published or otherwise readily available. if they meet the requirements of section Line 2—Section 511 tax. Under sectionSecurities include: 4940(e) that allows them to use a 4940(b), a domestic section 4947(a)(1)• Common and preferred stock, modified 1% tax on net investment nonexempt charitable trust or taxable• Bonds (including governmental income.) However, they must first private foundation must add to the taxobligations), and compute the tax under section 4940(a) as figured under section 4940(a) (on line 1)• Mutual fund shares. if that tax applied to them. the tax which would have been imposedOther gains and losses. For sales of Foreign organizations. Under section under section 511 for the tax year if it hadanything other than publicly traded 4948, exempt foreign private foundations been exempt from tax under sectionsecurities sold, each transaction must be are subject to a 4% tax on their gross 501(a). If the domestic section 4947(a)(1)listed and reported separately, completing investment income derived from U.S. nonexempt charitable trust or taxableall appropriate columns in Part IV. sources. private foundation has unrelated business




taxable income that would have been Line 9—Tax due. Domestic foundations the governing instrument. If ansubject to the tax imposed by section 511, should see General Instruction P. organization claims it satisfies thethe computation of tax must be shown in requirements of section 508(e) byAll foreign organizations shouldan attachment. Form 990-T may be used operation of state law, the provisions ofenclose a check or money order (in U.S.as the attachment. All other filers, enter state law must effectively impose thefunds), made payable to the Unitedzero. section 508(e) requirements on theStates Treasury, with Form 990-PF.

organization. See Rev. Rul. 75-38,Line 4—Subtitle A tax. Domestic Amended return. If you are amending 1975-1 C.B. 161, for a list of states withsection 4947(a)(1) nonexempt charitable Part VI, be sure to combine any tax due legislation that satisfies the requirementstrusts and taxable private foundations, that was paid with the original return (or of section 508(e).enter the amount of subtitle A (income) any overpayment credited or refunded) inHowever, if the state law does nottax for the year reported on Form 1041 or the total for line 7. On the dotted line to

apply to a governing instrument thatForm 1120. All other filers, enter zero. the left of the line 7 entry space, writecontains mandatory directions conflicting“Tax Paid w/ O.R.” and the amount paid.Line 5—Tax based on investmentwith any of its requirements and theIf you had an overpayment, write “O.R.income. Subtract line 4 from line 3 andorganization has such mandatoryOverpayment” and the amount credited orenter the difference (but not less thandirections in its governing instrument,refunded in brackets.zero) on line 5. Any overpayment enteredthen the organization has not satisfied theon line 10 that is the result of a negative If you file more than one amended requirements of section 508(e) by theamount shown on line 5 will not be return, attach a schedule listing the tax operation of that legislation.refunded. Unless the organization is a due amounts that were paid and Line 8a. In the space provided list alldomestic section 4947(a)(1) nonexempt overpayment amounts that were credited states:charitable trust or taxable private or refunded. Write “See Attachment” on

foundation, the amount on line 5 is the 1. To which the organization reports inthe dotted line and enter the net amountsame as on line 1. any way about its organization, assets, orin the entry space for line 7.

activities; andLine 6a. Enter the amount of 20092. With which the organization hasestimated tax payments and any 2008 Part VII-A—Statements

registered (or which it has otherwiseoverpayment of taxes that the Regarding Activities notified in any manner) that it intends toorganization specified on its 2008 returnbe, or is, a charitable organization or thatEach question in this section must beto be credited toward payment of 2009it is, or intends to be, a holder of propertyanswered “Yes,” “No,” or “N/A” (notestimated taxes.devoted to a charitable purpose.applicable).

Line 6a applies only to domesticLine 1. “Political purposes” include, but Attach a separate list if you need morefoundations.are not limited to, directly or indirectly space.CAUTION

!accepting contributions or making Line 9. If the organization claims statuspayments to influence the selection,Trust payments treated as as a private operating foundation for 2009nomination, election, or appointment ofbeneficiary payments. A trust may treat and, in fact, meets the private operatingany individual to any federal, state, orany part of estimated taxes it paid as foundation requirements for that year (aslocal public office or office in a politicaltaxes paid by the beneficiary. If the filing reflected in Part XIV), any excessorganization, or the election oforganization was a beneficiary that distributions carryover from 2008 or priorpresidential or vice presidential electors,received the benefit of such a payment years may not be carried over to 2009 orwhether or not the individual or electorsfrom a trust, include the amount on line any year after 2009 even if it does notare actually selected, nominated, elected,6a of Part VI and write, “Includes section meet the private operating foundationor appointed.643(g) payment.” See section 643(g) for requirements. See the instructions for

more information about estimated tax Line 3. A “conformed copy” of an Part XIII.payments treated as paid by a organizational document is one that Line 10—Substantial contributors. Ifbeneficiary. agrees with the original document and all you answer “Yes,” attach a schedule

its amendments. If copies are not signed,Line 6b. Exempt foreign foundations listing the names and addresses of allattach a written declaration signed by anmust enter the amount of tax withheld at persons who became substantialofficer authorized to sign for thethe source. contributors during the year.organization, certifying that they areLine 6d. Enter the amount of any The term “substantial contributor”complete and accurate copies of thebackup withholding erroneously withheld. means any person whose contributions ororiginal documents.Recipients of interest or dividend bequests during the current tax year andNote. If you are filing electronically, sendpayments must generally certify their prior tax years total more than $5,000 anda conformed copy of the changes to thecorrect tax identification number to the are more than 2% of the totalIRS at the address listed in Generalbank or other payer on Form W-9, contributions and bequests received byInstruction U.Request for Taxpayer Identification the foundation from its creation through

Number and Certification. If the payer the close of its tax year. In the case of aLine 6. For a private foundation to bedoes not get this information, it must trust, the term “substantial contributor”exempt from income tax, its governingwithhold part of the payments as “backup also means the creator of the trustinstrument must include provisions thatwithholding.” If the organization files Form (section 507(d)(2)(A)).require it to act or refrain from acting so990-PF and was subject to erroneous as not to engage in an act of self-dealing The term “person” includes individuals,backup withholding because the payer did (section 4941) or subject the foundation trusts, estates, partnerships, associations,not realize the payee was an exempt to the taxes imposed by sections 4942 corporations, and other exemptorganization and not subject to this (failure to distribute income), 4943 organizations.withholding, the organization can claim (excess business holdings), 4944 Each contribution or bequest must becredit for the amount withheld. (investments which jeopardize charitable valued at fair market value on the date itpurpose), and 4945 (taxableDo not claim erroneous backup was received.expenditures). A private foundation maywithholding on line 6d if you claim Any person who is a substantialsatisfy these section 508(e) requirementsit on Form 990-T.CAUTION

!contributor on any date will remain aeither by express language in itssubstantial contributor for all later periods.Line 8—Penalty. Enter any penalty for governing instrument or by application of

underpayment of estimated tax shown on state law that imposes the above However, a person will cease to be aForm 2220. Form 2220 is used by both requirements on the foundation or treats substantial contributor with respect to anycorporations and trusts. these requirements as being contained in private foundation if:




Line 15—Section 4947(a)(1) trusts.1. The person, and all related controlled entity within the meaning ofSection 4947(a)(1) nonexempt charitablepersons, made no contributions to the section 512(b)(13), attach a scheduletrusts that file Form 990-PF instead offoundation during the 10-year period using the format provided in the sampleForm 1041 must complete this line. Theending with the close of the taxable year; schedule on the next page. In column (c),trust should include exempt-interest2. The person, or any related person, describe each transfer or paymentdividends received from a mutual fund orwas never the foundation’s manager received, including payment of interest,other regulated investment company asduring this 10-year period; and annuities, royalties, rents, dividends, feeswell as tax-exempt interest received3. The aggregate contributions made or other payments for services,directly.by the person, and related persons, are contributions to capital, and loans. In

determined by the IRS to be insignificant column (d), enter the amount of each loancompared to the aggregate amount of or transfer from each controlled entity. Part VII-B—Activities forcontributions to the foundation by any Line 12—Interest in insurance Which Form 4720 May Beother person and the appreciated value of contracts. Answer “Yes” if after Augustcontributions held by the foundation. Required17, 2006, but before August 17, 2008, the

foundation directly or indirectly acquired The purpose of these questions is toThe term “related person” includes anyany applicable insurance contract that is a determine if there is any initial excise taxother person who would be a disqualifiedpart of a structured transaction involving a due under sections 170(f)(10),person because of a relationship with thepool of such contracts. If you answer 4941–4945, 4955, 4958, 4966, and 4967.substantial contributor (section 4946).“Yes,” complete Form 8921. If the answer is “Yes” to question 1b, 1c,When the substantial contributor is a

2b, 3b, 4a, 4b, 5b, 6b, or 7b, completecorporation, the term also includes any An applicable insurance contract is and file Form 4720 unless an exceptionofficer or director of the corporation. The any life insurance, annuity, or endowment applies.term “substantial contributor” does not contract in which an applicable exemptinclude public charities (organizations Line 1—Self-dealing. The activitiesorganization and a person other than andescribed in section 509(a)(1), (2), or (3)). listed in 1a(1)–(6) are consideredapplicable exempt organization have

self-dealing under section 4941 unlessdirectly or indirectly held an interest in theLine 11. Answer “Yes” if at any timeone of the exceptions applies. See www.contract (whether or not at the sameduring the tax year the foundation ownedirs.gov/charities/foundations/article/time). However, an applicable insurancea controlled entity. A controlled entity is0,,id=137679,00.html.contract does not include any lifean entity in which the foundation owns

insurance, annuity, or endowmentmore than 50% of the: The terms “disqualified person” andcontract if: “foundation manager” are defined in1. Stock (by vote or value) in a

General Instruction C.1. All persons directly or indirectlycorporation,holding any interest in the contract (other2. Interest (of profit or capital) in a Line 1b. If you answered “Yes” to any ofthan applicable exempt organizations)partnership, or the questions in 1a, you should answerhave an insurable interest in the insured3. Beneficial interest of any other “Yes” to 1b unless all of the acts engagedunder the contract independent of anyentity. in were “excepted” acts. Excepted actsinterest of an applicable exempt are described in Regulations sectionsorganization in the contract, orThe foundation must apply section 318 53.4941(d)-3 and 4 or appear in Notices

2. The sole interest in the contract ofin determining its ownership of stock in a published in the Internal Revenue Bulletinan applicable exempt organization orcorporation and use similar principles in relating to disaster assistance.each person other than an applicabledetermining its ownership interests in

Line 2b—Taxes on failure to distributeexempt organization is as a namedother entities.income. If you answer “No” to questionbeneficiary, orThe foundation must attach the 2b, attach a statement explaining:3. The sole interest in the contract ofapplicable schedules described below: • All the facts regarding the incorrecteach person other than an applicable

1. If the foundation answered “Yes” to valuation of assets, andexempt organization is:line 11, and • The actions taken (or planned) toa. As a beneficiary of a trust holding2. If at any time during the tax year, comply with section 4942(a)(2)(B), (C),an interest in the contract, but only if thethe foundation made any loans or and (D) and the related regulations.person’s designation as such beneficiarytransfers to a controlled entity, or Line 3a. A private foundation is notwas made without consideration and3. If at any time during the tax year, treated as having excess businesssolely on a gratuitous basis, orthe foundation received any transfers of holdings in any enterprise if, together withb. As a trustee who holds an interestfunds or payments (received or accrued) related foundations, it owns 2% or less ofin the contract in a fiduciary capacityfrom a controlled entity, including, but not the voting stock and 2% or less in valuesolely for the benefit of applicablelimited to, interest, annuities, royalties, of all outstanding shares of all classes oforganizations or persons described aboverents, dividends, fees, or other payments stock. (See “disqualified person” underin 1, 2, or 3a. An applicable organizationfor services, contributions to capital, and General Instruction C.) A similaris the foundation and any organization toloans. exception applies to a beneficial or profitswhich contributions are deductible for

interest in any business enterprise that isincome tax, estate tax, or gift taxAttached schedule for transfers toa trust or partnership.purposes and Indian tribal governments.controlled entities. If at any time during

For more information about excessthe tax year, the foundation made anyLine 13—Public inspection business holdings, see the Instructions forloans or transfers to a corporation,requirements and website address. All Form 4720.partnership, or other entity, which itdomestic private foundations (includingcontrolled within the meaning of section Line 4—Taxes on investments thatsection 4947(a)(1) nonexempt charitable512(b)(13), attach a schedule using the jeopardize charitable purposes. Intrusts treated as private foundations) areformat provided in the sample schedule general, an investment that jeopardizessubject to the public inspectionon the next page. In column (c), describe any of the charitable purposes of a privaterequirements. See General Instruction Qeach loan or transfer. In column (d), enter foundation is one for which a foundationfor information on making the foundation’sthe amount for each loan or transfer to manager did not exercise ordinaryannual returns and exemption applicationeach controlled entity. business care to provide for the long-andavailable for public inspection.Attached schedule for transfers from short-term financial needs of the

controlled entities. If at any time during Enter the foundation’s website address foundation in carrying out its charitablethe tax year, the foundation received any if the foundation has a website. purposes. For more details, see thetransfers of funds or payments from a Otherwise, enter “N/A.” regulations under section 4944.




Line 11—Example ASchedule of Information Regarding Transfers To a Controlled Entity

(A) (B) (C) (D)Name and address of each controlled entity Employer Description of transfer Amount of

identification transfernumber

a

b

c

d

e

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 11—Example BSchedule of Information Regarding Transfers From a Controlled Entity

(A) (B) (C) (D)Name and address of each controlled entity Employer Description of transfer Amount of

identification transfernumber

a

b

c

d

e

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




Line 5—Taxes on taxable • Remuneration to the individual (or income or received proceeds attributableexpenditures and political candidate or prospective candidate) for to the PTST during the tax year.expenditures. In general, payments speeches or other services, If the foundation answers “Yes” tomade for the activities described on lines • Travel expenses of the individual, both lines 7a and 7b, it may be required5a(1)–(5) are taxable expenditures. Go to • Expenses of conducting polls, surveys, to file Form 4720 and pay tax with respecthttp://www.irs.gov/charities/foundations/ or other studies, or preparing papers or to each PTST. The foundation’sarticle/0,,id=137250,00.html. other material for use by the individual, managers also may be required to file• Expenses of advertising, publicity, and Form 4720 and pay tax with respect toExcept as discussed below, a grant by

fundraising for such individual, and the relevant PTSTs.a private foundation to a public charity is • Any other expense that has the primarynot a taxable expenditure if the privateeffect of promoting public recognition orfoundation does not earmark the grant for Part VIII—Informationotherwise primarily accruing to the benefitany of the activities described in lines About Officers, Directors,of the individual.5a(1)–(5), and there is no oral or written

agreement by which the grantor See the regulations under section Trustees, Foundationfoundation may cause the grantee to 4945 for more information. Managers, Highly Paidengage in any such prohibited activity or Line 5b. If you answered “Yes” to any ofto select the grant recipient. the questions in 5a, you should answer Employees, and

“Yes” to 5b unless all of the transactionsGrants made to exempt operating Contractorsengaged in were “excepted” transactions.foundations (as defined in sectionExcepted transactions are described in4940(d)(2) and the instructions to Part VI) Line 1—List of officers, directors,Regulations section 53.4945 and appearare not subject to the expenditure trustees, etc. List the names,in Notices published in the Internalresponsibility provisions of section 4945. addresses, and other informationRevenue Bulletin relating to disaster requested for those who were officers,A grant from a nonoperatingassistance. For example, see IRS Pub. directors, and trustees (or any personfoundation may be a taxable expenditure3833, Disaster Relief. who had responsibilities or powers similarif made to a Type III supporting

to those of officers, directors, or trustees)Line 6b. Check “Yes” if, in connectionorganization (as defined in 4943(f)(5))of the foundation at any time during thewith any transfer of funds to a privatethat is not a functionally integratedyear. Each must be listed whether or notfoundation, the foundation directly orsupporting organization (as defined inthey receive any compensation from theindirectly pays premiums on any personal4943(f)(5)(B)). Check “Yes” on Line 5a(4)foundation. Give the address at whichbenefit contract, or there is anif you made such a grant. See Noticeofficers, etc., prefer the Internal Revenueunderstanding or expectation that any2006-109, 2006-51 I.R.B. 1121, for moreService to contact them.person will directly or indirectly pay theseinformation.

premiums. Also include on this list any officers orA grant from a nonoperatingdirectors (or any person who hadReport the premiums it paid and thefoundation may be a taxable expenditureresponsibilities or powers similar to thosepremiums paid by others, but treated asif made to any other supportingof officers or directors) of a disregardedpaid by the private foundation, on Formorganization (including a functionallyentity owned by the foundation who are8870 and pay the excise tax (which isintegrated Type III), if a disqualifiednot officers, directors, etc., of theequal to premiums paid) on Form 4720.person of the private foundation controlsfoundation.the supporting organization or any of its For more information, see Form 8870

If the foundation (or disregarded entity)supported organizations. Check “Yes” on and Notice 2000-24, 2000-17 I.R.B. 952pays any other person, such as aLine 5a(4) if you made such a grant. See (Notice 2000-24, 2000-1 C.B. 952).management services company, for theNotice 2006-109, 2006-51 I.R.B. 1121, for Line 7a. Answer “Yes” if the foundationservices provided by any of themore information. was a party to a prohibited tax shelterfoundation’s officers, directors, or trusteesUnder section 4955, a section transaction (“PTST”) as described in(or any person who had responsibilities or501(c)(3) organization must pay an excise section 4965(e) at any time during the taxpowers similar to those of officers,tax for any amount paid or incurred on year.directors, or trustees), report thebehalf of or opposing any candidate for Prohibited tax shelter transaction. In compensation and other items on Partpublic office. The organization must pay general, prohibited tax shelter transaction VIII as if you had paid the officers, etc.,an additional excise tax if it does not means any listed transaction and any directly. Also, see Announcementcorrect the expenditure timely. prohibited reportable transaction. 2001-33, 2001-17 I.R.B. 1137, 2001-1

A manager of a section 501(c)(3) Listed transaction. A listed transaction, C.B. 1137.organization who knowingly agrees to a within the meaning of Code section Show all forms of compensationpolitical expenditure must pay an excise 6707A(c)(2), is a transaction that is the earned by each listed officer, etc. Intax unless the agreement is not willful and same as, or substantially similar to, any addition to completing Part VIII, if youthere is reasonable cause. A manager transaction that has been specifically want to explain the compensation of onewho does not agree to a correction of the identified by the Secretary in published or more officers, directors, and trustees,political expenditure may have to pay an guidance as a tax avoidance transaction you may provide an attachmentadditional excise tax. for purposes of Code section 6011. describing the person’s entire 2009

A section 501(c)(3) organization will Prohibited reportable transaction. compensation package.lose its exempt status if it engages in Prohibited reportable transaction means Enter zero in columns (c), (d), and (e)political activity. any confidential transaction or any if no compensation was paid. Attach a

transaction with contractual protection (asA political expenditure that is treated schedule if more space is needed.defined under regulations prescribed byas an expenditure under section 4955 is Column (b). A numerical estimate ofthe Secretary) (see Regulations sectionnot treated as a taxable expenditure the average hours per week devoted to1.6011-4(b)(3) and (4)) which is aunder section 4945. the position is required for the answer toreportable transaction (as defined in be considered complete.For purposes of the section 4955 tax, section 6707A(c)(1)).

when an organization promotes a Phrases such as “as needed” or If the answer to this question iscandidate for public office (or is used or “as required” are unacceptable“Yes,” the foundation must also filecontrolled by a candidate or prospective entries for column (b).Form 8886-T. CAUTION!

candidate), amounts paid or incurred forthe following purposes are political Line 7b. Answer “Yes” if the foundation Column (c). Enter salary, fees,expenditures: answered “Yes” to 7a, and it had net bonuses, and severance payments




received by each person listed. Include doctors). Also show the total number of all other charitable organizations or on publiccurrent year payments of amounts other independent contractors who commissions or task forces;reported or reportable as deferred received more than $50,000 for the year 8. Provide technical advice orcompensation in any prior year. for performing professional services. assistance to a governmental body, a

governmental committee, or subdivisionColumn (d). Include all forms ofof either, in response to a written requestPart IX-A—Summary ofdeferred compensation and futureby the governmental body, committee, orseverance payments (whether or not Direct Charitable Activities subdivision;funded or vested, and whether or not the

9. Conduct performing artsList the foundation’s four largestdeferred compensation plan is a qualifiedperformances; orprograms as measured by the direct andplan under section 401(a)). Include

10. Provide technical assistance toindirect expenses attributable to each thatpayments to welfare benefit plansgrantees and other charitableconsist of the direct active conduct of(employee welfare benefit plans coveredorganizations. This assistance must havecharitable activities. Whether anyby Part I of Title 1 of ERISA, providingsignificance beyond the purposes of theexpenditure is for the direct activebenefits such as medical, dental, lifegrants made to the grantees and must notconduct of a charitable activity isinsurance, apprenticeship and training,consist merely of monitoring or advisingdetermined, generally, by the definitionsscholarship funds, severance pay,the grantees in their use of the grantand special rules of section 4942(j)(3) anddisability, etc.) on behalf of the officers,funds. Technical assistance involves thethe related regulations, which define aetc. Reasonable estimates may be used iffurnishing of expert advice and relatedprivate operating foundation.precise cost figures are not readilyassistance regarding, for example: available. Except for significant involvement

a. Compliance with governmentalgrant programs, described below, do notUnless the amounts are reported in regulations,include in Part IX-A any grants orcolumn (c), report, as deferred b. Reducing operating costs orexpenses attributable to administeringcompensation in column (d), salaries and increasing program accomplishments,grant programs, such as reviewing grantother compensation earned during the c. Fundraising methods, andapplications, interviewing or testingperiod covered by the return, but not yet d. Maintaining complete and accurateapplicants, selecting grantees, andpaid by the date the foundation files its financial records.reviewing reports relating to the use of thereturn.grant funds.Column (e). Enter both taxable and Report both direct and indirect

Include scholarships, grants, or othernontaxable fringe benefits, expense expenses in the expense totals. Directpayments to individuals as part of anaccount and other allowances (other than expenses are those that can beactive program in which the foundationde minimis fringe benefits described in specifically identified as connected with amaintains some significant involvement.section 132(e)). See Pub. 525, Taxable particular activity. These include, amongRelated administrative expenses shouldand Nontaxable Income, for more others, compensation and travelalso be included. Examples of activeinformation. Examples of allowances expenses of employees and officersprograms and definitions of the terminclude amounts for which the recipient directly engaged in an activity, the cost of“significant involvement” are provided indid not account to the organization or materials and supplies utilized inRegulations sections 53.4942(b)-1(b)(2)allowances that were more than the conducting the activity, and fees paid toand 53.4942(b)-1(d).payee spent on serving the organization. outside firms and individuals in

Include payments made in connection connection with a specific activity.Do not include any program-relatedwith indemnification arrangements, the Indirect (overhead) expenses areinvestments (reportable in Part IX-B) invalue of the personal use of housing, those that are not specifically identified asthe description and expense totals, but beautomobiles, or other assets owned or connected with a particular activity butsure to include qualified set-asides forleased by the organization (or provided that relate to the direct costs incurred indirect charitable activities reported on linefor the organization’s use without charge). conducting the activity. Examples of3 of Part XII. Also, include in Part IX-ALine 2—Compensation of five indirect expenses include:amounts paid or set aside to acquirehighest-paid employees. Fill in the • Occupancy expenses;assets used in the direct active conduct ofinformation requested for the five • Supervisory and clerical compensation;charitable activities.employees (if any) of the foundation (or • Repair, rental, and maintenance ofExpenditures for direct charitabledisregarded entity that the foundation equipment;activities include, among others, amountsowns) who received the greatest amount • Expenses of other departments or costpaid or set aside to:of annual compensation over $50,000. Do centers (such as accounting, personnel,

1. Acquire or maintain the operatingnot include employees listed on line 1. and payroll departments or units) thatassets of a museum, library, or historicAlso enter the total number of other service the department or function thatsite or to operate the facility;employees who received more than incurs the direct expenses of conducting

2. Provide goods, shelter, or clothing$50,000 in annual compensation. an activity; andto indigent or disaster victims if the • Other applicable general andShow each listed employee’s entire foundation maintains some significant administrative expenses, including thecompensation package for the period involvement in the activity rather than compensation of top management, to thecovered by the return. Include all forms of merely making grants to the recipients; extent reasonably allocable to a particularcompensation that each listed employee 3. Conduct educational conferences activity.received in return for his or her services. and seminars;

No specific method of allocation isSee the line 1 instructions for more details 4. Operate a home for the elderly orrequired. The method used, however,on includible compensation. disabled;must be reasonable and must be usedLine 3—Five highest-paid independent 5. Conduct scientific, historic, publicconsistently.contractors for professional services. policy, or other research with significance

Fill in the information requested for the beyond the foundation’s grant program Examples of acceptable allocationfive highest-paid independent contractors that does not constitute a prohibited methods include:(if any), whether individuals or attempt to influence legislation; • Compensation allocated on a timeprofessional service corporations or 6. Publish and disseminate the results basis,associations, to whom the organization of such research, reports of educational • Employee benefits allocated on thepaid more than $50,000 for the year to conferences, or similar educational basis of direct salary expenses,perform personal services of a material; • Travel, conference, and meetingprofessional nature for the organization 7. Support the service of foundation expenses charged directly to the activity(for example, attorneys, accountants, and staff on boards or advisory committees of that incurred the expense,




• Occupancy expenses allocated on a generally 5% of the total fair market value listed on a recognized foreign national orspace-utilized basis, and of its noncharitable assets, subject to regional exchange,• Other indirect expenses allocated on further adjustments as explained in the • Regularly traded in the national orthe basis of direct salary expenses or instructions for Part XI. The amount of regional over-the-counter market fortotal direct expenses. this minimum investment return is figured which published quotations are

in Part X and is used in Part XI to figure available, orthe amount required to be paid out (the • Locally traded, for which quotations canPart IX-B—Summary ofdistributable amount). be readily obtained from establishedProgram-Related brokerage firms.Minimum investment return. In figuringInvestments If securities are held in trust for, or onthe minimum investment return, include

behalf of, a foundation by a bank or otheronly those assets that are not actuallyProgram-related investment. Sectionfinancial institution that values thoseused or held for use by the organization4944(c) and corresponding regulationssecurities periodically using a computerfor a charitable, educational, or otherdefine a program-related investment aspricing system, a foundation may use thatsimilar function that contributed to theone that is made primarily to accomplishsystem to determine the value of thecharitable status of the foundation. Casha charitable purpose of the foundationsecurities. The system must beon hand and on deposit is consideredand no substantial purpose of which is toacceptable to the IRS for federal estateused or held for use for charitableproduce investment income or a capitaltax purposes.purposes only to the extent of thegain from the sale of the investment.

reasonable cash balances reported inExamples of program-related investments The foundation may reduce the fairPart X, line 4. See the instructions forinclude educational loans to individuals market value of securities only to thelines 1b and 4 below .and low-interest loans to other section extent that it can establish that the501(c)(3) organizations. securities could only be liquidated in aAssets held for the production ofGeneral instructions. Include only reasonable period of time at a price lessincome or for investment are notthose investments that were reported in than the fair market value because of:considered to be used directly forPart XII, line 1b for the current year. Do • The size of the block of the securities,charitable functions even though thenot include any investments made in any • The fact that the securities held areincome from the assets is used forprior year even if they were still held by securities in a closely held corporation, orcharitable functions. It is a factualthe foundation at the end of 2009. • The fact that the sale of the securitiesquestion whether an asset is held for the

would result in a forced or distress sale.production of income or for investmentInvestments consisting of loans torather than used or held for use directlyindividuals (such as educational loans) Any reduction in value allowed underby the foundation for charitable purposes.are not required to be listed separately these provisions may not be more than

but may be grouped with other 10% of the fair market value (determinedFor example, an office building used toprogram-related investments of the same without regard to any reduction in value).provide offices for employees engaged intype. Loans to other section 501(c)(3) managing endowment funds for the Also, see Regulations sectionsorganizations and all other types of foundation is not considered an asset 53.4942(a)-2(c)(4)(i)(b), (c), and (iv)(a).program-related investments must be used for charitable purposes.listed separately on lines 1 through 3 or Line 1b—Average of monthly cash

Dual-use property. When propertyon an attachment. balances. Compute cash balances on ais used both for charitable and other monthly basis by averaging the amount ofLines 1 and 2. List the two largestpurposes, the property is considered used cash on hand on the first and last days ofprogram-related investments made by theentirely for charitable purposes if 95% or each month. Include all cash balancesfoundation in 2009, whether or not themore of its total use is for that purpose. If and amounts that may be used forinvestments were still held by theless than 95% of its total use is for charitable purposes (see line 4 below) orfoundation at the end of the year.charitable purposes, a reasonable set aside and taken as a qualifyingLine 3. Combine all other allocation must be made between distribution (see Part XII).program-related investments and enter charitable and noncharitable use.

the total on the line 3 Amount column. List Line 1c—Fair market value of all otherExcluded property. Certain assetsthe individual investments or groups of assets. The fair market value of assets

are excluded entirely from theinvestments included (attach a schedule if other than securities is determinedcomputation of the minimum investmentnecessary). annually except as described below. Thereturn. These include pledges of grants valuation may be made by privateThe total of lines 1 through 3 in and contributions to be received in the foundation employees or by any otherthe Amount column must equal future and future interests in estates and person even if that person is athe amount reported on line 1b of

TIPtrusts. disqualified person. If the IRS accepts thePart XII. valuation, it is valid only for the tax yearLine 1a—Average monthly fair market

for which it is made. A new valuation isvalue of securities. If market quotationsPart X—Minimum required for the next tax year.are readily available, a foundation mayInvestment Return use any reasonable method to determine 5-year valuation. A written, certified,the average monthly fair market value of and independent appraisal of the fairWho must complete this section? Allsecurities such as common and preferred market value of any real estate, includingdomestic foundations must completestock, bonds, and mutual fund shares, as any improvements, may be determinedPart X.long as that method is consistently used. on a 5-year basis by a qualified person.Foreign foundations that checked box For example, a value for a particularD2 on page 1 do not have to complete The qualified person may not be amonth might be determined by the closingPart X unless claiming status as a private disqualified person (see Generalprice on the first or last trading days of theoperating foundation. Instruction C) with respect to the privatemonth or an average of the closing prices foundation or an employee of thePrivate operating foundations on the first and last trading days of the foundation.described in sections 4942(j)(3) or month. Market quotations are considered

4942(j)(5) must complete Part X in order readily available if a security is any of the Commonly accepted valuationto complete Part XIV. following: methods must be used in making theOverview. A private foundation that is • Listed on the New York or American appraisal. A valuation based onnot a private operating foundation must Stock Exchange or any city or regional acceptable methods of valuing propertypay out, as qualifying distributions, its exchange in which quotations appear on for federal estate tax purposes will beminimum investment return. This is a daily basis, including foreign securities considered acceptable.




Line 6—Deduction from distributableThe appraisal must include a closing In the case of securities, there areamount. If the foundation was organizedstatement that, in the appraiser’s opinion, certain limitations on the size of thebefore May 27, 1969, and its governingthe appraised assets were valued reduction in value that can be claimed.instrument or any other instrumentaccording to valuation principles regularly See the instructions for Part X, line 1a.continues to require the accumulation ofemployed in making appraisals of such Line 2—Acquisition indebtedness.income after a judicial proceeding toproperty, using all reasonable valuation Enter the total acquisition indebtednessreform the instrument has terminated,methods. The foundation must keep a that applies to assets included on line 1.then the income required to becopy of the independent appraisal for its For details, see section 514(c)(1).accumulated must be subtracted from therecords. If a valuation is reasonable, the Line 4—Cash deemed held for distributable amount beginning with thefoundation may use it for the tax year for charitable activities. Foundations may first tax year after the tax year in whichwhich the valuation is made and for each exclude from the assets used in the the judicial proceeding was terminated.of the 4 following tax years. minimum investment return computation (See the instructions for Part VII-A, lineAny valuation of real estate by a the reasonable cash balances necessary 6.)certified independent appraisal may be to cover current administrative expenses

replaced during the 5-year period by a and other normal and current Part XII—Qualifyingsubsequent 5-year certified independent disbursements directly connected with theappraisal or by an annual valuation as charitable, educational, or other similar Distributionsdescribed above. The most recent activities. The amount of cash that may “Qualifying distributions” are amountsvaluation should be used to compute the be excluded is generally 11/2% of the fair spent or set aside for religious,foundation’s minimum investment return. market value of all assets (minus any educational, or similar charitableacquisition indebtedness) as computed inIf the valuation is made according to purposes. The total amount of qualifyingPart X, line 3. However, if under the factsthe above rules, the IRS will continue to distributions for any year is used toand circumstances an amount larger thanaccept it during the 5-year period for reduce the distributable amount forthe deemed amount is necessary to paywhich it applies even if the actual fair specified years to arrive at theexpenses and disbursements, then youmarket value of the property changes undistributed income (if any) formay enter the larger amount instead ofduring the period. those years.11/2% of the fair market value on line 4. If

Valuation date. An asset required to Line 1a—Expenses, contributions,you use a larger amount, attach anbe valued annually may be valued as of gifts, etc. Enter the amount from Part I,explanation.any day in the private foundation’s tax line 26, column (d). However, if theLine 6—Short tax periods. If theyear, provided the foundation values the borrowed funds election applies, add thefoundation’s tax period is less than 12asset as of that date in all tax years. total of the repayments during the year tomonths, determine the applicableHowever, a valuation of real estate the amount from Part I, line 26, columnpercentage by dividing the number ofdetermined on a 5-year basis by a (d), and enter it on line 1a.days in the short tax period by 365 (orcertified, independent appraisal may be Borrowed funds. If the foundation366 in a leap year). Multiply the result bymade as of any day in the first tax year of borrowed money in a tax year beginning5%. Then multiply the modifiedthe foundation to which the valuation before January 1, 1970, or later borrowspercentage by the amount on line 5 andapplies. money under a written commitmententer the result on line 6.

binding on December 31, 1969, theAssets held for less than a tax year.foundation may elect to treat anyTo determine the value of an asset held Part XI—Distributablerepayments of the loan principal afterless than 1 tax year, divide the number of Amount December 31, 1969, as qualifyingdays the foundation held the asset by the

If the organization is claiming status as a distributions at the time of repayment,number of days in the tax year. Multiplyprivate operating foundation described in rather than at the earlier time that thethe result by the fair market value of thesection 4942(j)(3) or (j)(5) or if it is a borrowed funds were actually distributed,asset.foreign foundation that checked box D2 only if:Line 1e—Reduction claimed foron page 1, check the box in the heading 1. The money is used to makeblockage or other factors. If the fairfor Part XI. You do not need to complete expenditures for a charitable or similarmarket value of any securities, real estatethis part. See the Part XIV instructions for purpose, andholdings, or other assets reported on linesmore details on private operating 2. Repayment on the loan did not start1a and 1c reflects a blockage discount,foundations. until a year beginning after 1969.marketability discount, or other reduction

Section 4942(j)(5) foundations arefrom full fair market value because of theOn these loans, deduct any interestclassified as private operating foundationssize of the asset holding or any other

payment from gross income to computefor purposes of section 4942 only if theyfactor, enter on line 1e the aggregateadjusted net income in the year paid.meet the requirements of Regulationsamount of the discounts claimed. Attach

section 53.4942(b)-1(a)(2). Election. To make this election,an explanation that includes the followingattach a statement to Form 990-PF for theinformation for each asset or group of The distributable amount for 2009 isfirst tax year beginning after 1969 inassets involved: the amount that the foundation mustwhich a repayment of loan principal isdistribute by the end of 2010 as qualifying1. A description of the asset or assetmade and for each tax year after that indistributions to avoid the 30% tax on thegroup (for example, 20,000 shares ofwhich any repayment of loan principal isundistributed portion.XYZ, Inc., common stock),made. The statement should show:2. For securities, the percentage of Line 4. Enter the total of recoveries of • The lender’s name and address,the total issued and outstanding securities amounts treated as qualifying • The amount borrowed,of the same class that is represented by distributions for any year under section • The specific use of the borrowed funds,the foundation’s holding, 4942(g). Include recoveries of part or alland3. The fair market value of the asset (as applicable) of grants previously made, • The private foundation’s election toor asset group before any claimed proceeds from the sale or othertreat repayments of loan principal asblockage discount or other reduction, disposition of property whose cost wasqualifying distributions.4. The amount of the discount treated as a qualifying distribution when

claimed, and the property was acquired, and any Line 1b—Program-related5. A statement that explains why the amount set aside under section 4942(g) investments. Enter the total of the

claimed discount is appropriate in valuing to the extent it is determined that this “Amount” column from Part IX-B. See thethe asset or group of assets for section amount is not necessary for the purposes Part IX-B instructions for the definition of4942 purposes. of the set-aside. program-related investments.




Line 3—Amounts set aside. Amounts Lines 3a through 3e. Enter the amountPart XIII—Undistributedset aside may be treated as qualifying of any excess distribution made on thedistributions only if the private foundation line for each year listed. Do not includeIncomeestablishes to the satisfaction of the IRS any amount that was applied against theIf you checked box D2 on page 1, do notthat the amount will be paid for the distributable amount of an earlier year orfill in this part.specific project within 60 months from the that was already used to meet

If the organization is a privatedate of the first set-aside and meets 1 or pass-through distribution requirements.operating foundation for any of the years2 below. (See the instructions for line 7.)shown in Part XIII, do not complete the1. The project can be better Line 3f. This amount can be appliedportions of Part XIII that apply to thoseaccomplished by a set-aside than by the in 2009.years. If there are excess qualifyingimmediate payment of funds (suitability Line 4—Qualifying distributions.distributions for any tax year, do not carrytest). Enter the total amount of qualifyingthem over to a year in which the2. The private foundation meets the distributions made in 2009 from Part XII,organization is a private operatingrequirements of section 4942(g)(2)(B)(ii) line 4. The total of the amounts applied onfoundation or to any later year. For(cash distribution test). lines 4a through 4e is equal to theexample, if a foundation made excess

qualifying distributions made in 2009.qualifying distributions in 2007 andSet-aside under item 1. For anybecame a private operating foundation in Line 4a. The qualifying distributions forset-aside under 1 above, the private2009, the excess qualifying distributions 2009 are first used to reduce anyfoundation must apply for IRS approval byfrom 2007 could be applied against the undistributed income remaining fromthe end of the tax year in which thedistributable amount for 2008 but not to 2008. Enter only enough of the 2009amount is set aside. Send the applicationany year after 2008. qualifying distributions to reduce the 2008for approval to the:

undistributed income to zero.The purpose of this part is to enableInternal Revenue Servicethe foundation to comply with the rules for Lines 4b and 4c. If there are any 2009TE/GE EO - Determinationsapplying its qualifying distributions for the qualifying distributions remaining afterP.O. Box 2508year 2009. In applying the qualifying reducing the 2008 undistributed income toCincinnati, OH 45201distributions, there are three basic steps. zero, one or more elections can be made

The application for approval must give under Regulations section1. Reduce any undistributed incomeall of the following information: 53.4942(a)-3(d)(2) to apply all or part offor 2008 (but not below zero).• The nature and purposes of the specific the remaining qualifying distributions to2. The organization may use any partproject and the amount of the set-aside any undistributed income remaining fromor all remaining qualifying distributions forfor which approval is requested, years before 2008 or to apply to corpus.2009 to satisfy elections. For example, if• The amounts and approximate dates ofundistributed income remained for any Elections. To make these elections,any planned additions to the set-asideyear before 2008, it could be reduced to the organization must file a statementafter its initial establishment,zero or, if the foundation wished, the with the IRS or attach a statement, as• The reasons why the project can bedistributions could be treated as described in the above regulationsbetter accomplished by the set-aside thandistributions out of corpus. section, to Form 990-PF. An electionby the immediate payment of funds,

3. If no elections are involved, apply made by filing a separate statement with• A detailed description of the project,remaining qualifying distributions to the the IRS must be made within the year forincluding estimated costs, sources of any2009 distributable amount on line 4d. If which the election is made. Otherwise,future funds expected to be used forthe remaining qualifying distributions are attach a statement to the Form 990-PFcompletion of the project, and thegreater than the 2009 distributable filed for the year the election was made.location(s) (general or specific) of anyamount, the excess is treated as a Where to enter. If the organizationphysical facilities to be acquired ordistribution out of corpus on line 4e. elected to apply all or part of theconstructed as part of the project, and

remaining amount to the undistributed• A statement of an appropriate If for any reason the 2009 qualifyingincome remaining from years beforefoundation manager that the amounts set distributions do not reduce any 20082008, enter the amount on line 4b.aside will actually be paid for the specific undistributed income to zero, the amount

project within a specified period of time If the organization elected to treatnot distributed is subject to a 30% tax. Ifending within 60 months after the date of those qualifying distributions as athe 2008 income remains undistributed atthe first set-aside, or a statement distribution out of corpus, enter thethe end of 2010, it could be subject againexplaining why the period for paying the amount on line 4c.to the 30% tax. Also, see section 4942(b)amount set aside should be extended and for the circumstances under which a Entering an amount on line 4b orindicating the extension of time second-tier tax could be imposed. 4c without submitting the requiredrequested. (Include in this statement the

Line 1—Distributable amount. Enter statement is not considered areason why the proposed project could CAUTION!

the distributable amount for 2009 from valid election.not be divided into two or more projectsPart XI, line 7.covering periods of no more than 60 Line 4d. Treat as a distribution of theLine 2—Undistributed income. Entermonths each.) distributable amount for 2009 anythe distributable amount for 2008 and qualifying distributions for 2009 thatSet-aside under item 2. For anyamounts for earlier years that remained remain after reducing the 2008set-aside under 2 above, the privateundistributed at the beginning of the undistributed income to zero and afterfoundation must attach a schedule to its2009 tax year. electing to treat any part of the remainingannual information return showing how

distributions as a distribution out ofLine 2b. Enter the amount ofthe requirements are met. A schedule iscorpus or as a distribution of a prior year’sundistributed income for years beforerequired for the year of the set-aside andundistributed income. Enter only enough2008.for each subsequent year until theof the remaining 2009 qualifyingset-aside amount has been distributed. Line 3—Excess distributionsdistributions to reduce the 2009See Regulations section carryover to 2009. If the foundation hasdistributable amount to zero.53.4942(a)-3(b)(7)(ii) for specific made excess distributions out of corpus in

requirements. prior years, which have not been applied Line 4e. Any 2009 qualifyingLine 5—Reduced tax on investment in any year, enter the amount for each distributions remaining after reducing theincome under section 4940(e). If the year. Do not enter an amount for a 2009 distributable amount to zero shouldorganization does not qualify for the 1% particular year if the organization was a be treated as an excess distribution out oftax under section 4940(e), enter zero. private operating foundation for any later corpus. This amount may be carried overSee Parts V and VI of the instructions. year. and applied to later years.




Line 5—Excess qualifying comply with certain distribution “N/A” on all other lines in the Total columndistributions carryover applied to requirements. for Part XIV.2009. Enter any excess qualifying By the 15th day of the 3rd month after Private operating foundation (sectiondistributions from line 3, which were the end of the tax year in which the 4942(j)(3)). The term “private operatingapplied to 2009, in both the Corpus foundation received the contributions, the foundation” means any private foundationcolumn and the 2009 column. Apply the donee foundation must distribute as that spends at least 85% of the smaller ofoldest excess qualifying distributions first. qualifying distributions out of corpus: its adjusted net income or its minimumThus, the organization will apply any

a. An amount equal to 100% of all investment return directly for the activeexcess qualifying distributions carriedcontributions received during the year in conduct of the exempt purpose orforward from 2004 before those from laterorder for the individual contributor to functions for which the foundation isyears.receive the benefit of the 50% limit on organized and operated (the Income

Line 6a. Add lines 3f, 4c, and 4e. deductions, and Test) and that also meets one of the threeSubtract line 5 from the total. Enter the tests below.b. Distribute all contributions ofnet total in the Corpus column. property only so that the individual or 1. Assets test. 65% or more of theLine 6c. Enter only the undistributed corporation making the contribution is not foundation’s assets are devoted directlyincome from 2007 and prior years for subject to the section 170(e)(1)(B)(ii) to those activities or functionally relatedwhich either a notice of deficiency under limitations. businesses, or both; or 65% or more ofsection 6212(a) has been mailed for the the foundation’s assets are stock of aIf the organization is applying excesssection 4942(a) first-tier tax, or on which corporation that is controlled by thedistributions from prior years (forthe first-tier tax has been assessed foundation, and substantially all of theinstance, any part of the amount in Partbecause the organization filed a Form assets of the corporation are devoted toXIII, line 3f) to satisfy the distribution4720 for a tax year that began before those activities or functionally relatedrequirements of section 170(b)(1)(F) or2008. businesses.4942(g)(3), it must make the election

2. Endowment test. The foundationLines 6d and 6e. These amounts are under Regulations sectionnormally makes qualifying distributionstaxable under the provisions of section 53.4942(a)-3(c)(2). Also, see Regulationsdirectly for the active conduct of the4942(a), except for any part that is due section 1.170A-9(h)(2).exempt purpose or functions for which itsolely to improper valuation of assets to Enter on line 7 the total distributionsis organized and operated in an amountwhich the provisions of section 4942(a)(2) out of corpus made to satisfy thethat is two-thirds or more of its minimumare being applied (see Part VII-B, line 2b). restrictions on amounts received frominvestment return.Report the taxable amount on Form 4720. donors described above.

3. Support test. The foundationIf the exception applies, attach anLine 8—Outdated excess distributions normally receives 85% or more of itsexplanation.carryover. Because of the 5-year support (other than gross investmentLine 6f. In the 2009 column, enter the carryover limitation under section income as defined in section 509(e)) fromamount by which line 1 is more than the 4942(i)(2), the organization must reduce the public and from five or more exempttotal of lines 4d and 5. This is the any excess distributions carryover by any organizations that are not described inundistributed income for 2009. The amounts from 2004 that were not applied section 4946(a)(1)(H) with respect toorganization must distribute the amount in 2009. each other or the recipient foundation.shown by the end of its 2010 tax year so Line 9—Excess distributions Not more than 25% of the support (otherthat it will not be liable for the tax on carryover to 2010. Enter the amount by than gross investment income) normallyundistributed income. which line 6a is more than the total of may be received from any one of the

Line 7—Distributions out of corpus for lines 7 and 8. This is the amount the exempt organizations and not more than2009 pass-through distributions. organization may apply to 2010 and one-half of the support normally may be

following years. Line 9 can never be lessIf the foundation is the donee and received from gross investment income.than zero.receives a contribution from another

private foundation, the donor foundation Line 10—Analysis of line 9. In the See regulations under section 4942 formay treat the contribution as a qualifying space provided for each year, enter the the meaning of “directly for the activedistribution only if the donee foundation amount of excess distributions carryover conduct” of exempt activities for purposesmakes a distribution equal to the full from that year that has not been applied of these tests.amount of the contribution and the as of the end of the 2009 tax year. If there

Complying with these tests. Adistribution is a qualifying distribution that is an amount on the line for 2005, it mustfoundation may meet the income test andis treated as a distribution of corpus. The be applied by the end of the 2010 taxeither the assets, endowment, or supportdonee foundation must, no later than the year since the 5-year carryover period fortest by satisfying the tests for any 3 yearsclose of the first tax year after the tax year 2005 ends in 2010.during a 4-year period consisting of thein which it receives the contributions,tax year in question and the 3distribute an amount equal in value to the Part XIV—Privateimmediately preceding tax years. It maycontributions received in the prior tax year Operating Foundations also meet the tests based on the total ofand have no remaining undistributedall related amounts of income or assetsAll organizations that claim status asincome for the prior year. For example, ifheld, received, or distributed during thatprivate operating foundations underprivate foundation X received $1,000 in4-year period. A foundation may not usesection 4942(j)(3) or (5) for 2009 musttax year 2008 from foundation Y,one method for satisfying the income testcomplete Part XIV.foundation X would have to distribute theand another for satisfying one of the three$1,000 as a qualifying distribution out of Certain elderly care facilities (sectionalternative tests. Thus, if a foundationcorpus by the end of 2009 and have no 4942(j)(5)). For purposes of sectionmeets the income test on theremaining undistributed income for 2008. 4942 only, certain elderly care facilities3-out-of-4-year basis for a particular taxmay be classified as private operatingIf a private foundation receives a year, it may not use the 4-yearfoundations. To be so classified, theycontribution from an individual or a aggregation method for meeting one ofmust be operated and maintained for thecorporation and the individual is seeking the three alternative tests for that sameprincipal purpose explained in sectionthe 50% contribution base limit on year.4942(j)(5) and also meet the endowmentdeductions for the tax year (or the

test described below.individual or corporation is not applying In completing line 3c(3) of Part XIVthe limit imposed on deductions for If the foundation is a section under the aggregation method, the largestcontributions to the foundation of capital 4942(j)(5) organization, complete only amount of support from an exemptgain property), the foundation must lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter organization will be based on the total




Amounts in Correspond toamount received for the 4-year period distributions in the current tax year or anyPart XVI-A Amounts in Part I,from any one exempt organization. prior year.on line . . . column (a), line . . .

Line 3b—Approved for futureA new private foundation must use thepayment. List all contributions, grants,aggregation method to satisfy the tests for

1a – g . . . . . . . . . . . . . . . 11etc., approved during the year but notits first tax year in order to be treated as a 2 . . . . . . . . . . . . . . . . . . 11paid by the end of the year, including theprivate operating foundation from the 3 . . . . . . . . . . . . . . . . . . 3unpaid portion of any current yearbeginning of that year. It must continue to 4 . . . . . . . . . . . . . . . . . . 4set-aside. 5 and 6 . . . . . . . . . . . . . . 5b (descriptionuse the aggregation method for its 2nd

column)and 3rd tax years to maintain its status for Because Form 990-PF is 7 . . . . . . . . . . . . . . . . . . 11those years. disclosed to the public, do not 8 . . . . . . . . . . . . . . . . . . 69 . . . . . . . . . . . . . . . . . . 11 minus any specialreport personal information aboutCAUTION

!event expensesPart XV—Supplementary grantees that is not required and could beincluded on lines 13used for identity theft purposes, such as aInformation through 23 of Part I,

social security number, taxpayer column (a)Complete this part only if the foundation identification number, or bank account 10 . . . . . . . . . . . . . . . . . 10chad assets of $5,000 or more at any time 11a – e . . . . . . . . . . . . . . 11information. See General Instruction Q forduring the year. This part does not apply more information about public inspectionto a foreign foundation that during its and disclosure requirements. Line 1—Program service revenue. Onentire period of existence received lines 1a–g, list each revenue-producingsubstantially all (85% or more) of its program service activity of thePart XVI-A—Analysis ofsupport (other than gross investment organization. For each program serviceincome) from sources outside the Income-Producing activity listed, enter the gross revenueUnited States. earned for each activity, as well asActivitiesLine 2. In the space provided (or in an identifying business and exclusion codes,In Part XVI-A, analyze revenue items thatattachment, if necessary), furnish the in the appropriate columns. For line 1g,are also entered in Part I, lines 3–11,required information about the enter amounts that are payments forcolumn (a), and on line 5b. Contributionsorganization’s grant, scholarship, services rendered to governmental units.reported on line 1 of Part I are not enteredfellowship, loan, etc., programs. In Do not include governmental grants thatin Part XVI-A. For information onaddition to restrictions or limitations on are reportable on Part I, line 1.unrelated business income, see theawards by geographical areas, charitable Instructions for Form 990-T and Pub. 598. Report the total of lines 1a–g on linefields, and kinds of recipients, indicate

Columns (a) and (c). In column (a), 11 of Part I, along with any other incomeany specific dollar limitations or otherenter a 6-digit business code, from the list reportable on line 11.restrictions applicable to each type ofin the Instructions for Form 990-T, toaward the organization makes. This Program services are mainly thoseidentify any income reported in columninformation benefits the grant seeker and activities that the reporting organization(b). In column (c), enter an exclusionthe foundation. The grant seekers will be was created to conduct and that, alongcode, from the list on page 31, to identifyaware of the grant eligibility requirements, with any activities begun later, form theany income reported in column (d). Ifand the foundation should receive only basis of the organization’s currentmore than one exclusion code isapplications that adhere to these grant exemption from tax.applicable to a particular revenue item,application requirements.select the lowest numbered exclusion Program services can also include theIf the foundation only makes code that applies. Also, if nontaxable organization’s unrelated trade or businesscontributions to preselected charitable revenues from several sources are activities. Program service revenue alsoorganizations and does not accept reportable on the same line in column (d), includes income from program-relatedunsolicited applications for funds, check use the exclusion code that applies to the investments (such as interest earned onthe box on line 2. largest revenue source. scholarship loans) as defined in the

Line 3. If necessary, attach a schedule Columns (b), (d), and (e). For amounts instructions for Part IX-B.for lines 3a and 3b that lists separately reported in Part XVI-A on lines 1–11,

Line 11. On lines 11a–e, list eachamounts given to individuals and amounts enter in column (b) any income earned“Other revenue” activity not reported ongiven to organizations. that is unrelated business income (seelines 1 through 10. Report the sum of thesection 512). In column (d), enter anyPurpose of grant or contribution.amounts entered for lines 11a–e,income earned that is excluded from theEntries under this column should reflectcolumns (b), (d), and (e), on Part I, linecomputation of unrelated businessthe grant’s or contribution’s purpose and11.taxable income by Code section 512, 513,should be in greater detail than merely

or 514. In column (e), enter any related orclassifying them as charitable, Line 13. On line 13, enter the total ofexempt function income; that is, anyeducational, religious, or scientific columns (b), (d), and (e) of line 12.income earned that is related to theactivities.organization’s purpose or function which You may use the following worksheetFor example, use an identification constitutes the basis for the organization’s to verify your calculations.such as payments: exemption. Line 13, Part XVI-A . . . . . . . . . . .• For nursing service,

Also enter in column (e) any income• For fellowships, or Minus: Part I, Line 5b . . . . . . . . .specifically excluded from gross income• For assistance to indigent families.Note: If Part I, line 5b,other than by Code section 512, 513, orreflects a loss, add thatEntries such as “grant” or 514, such as interest on state and localamount here instead of“contribution” under the column bonds that is excluded from tax by sectionsubtracting.titled Purpose of grant or 103. You must explain in Part XVI-B anyCAUTION

!contribution are unacceptable. amount shown in column (e). Plus: Part I, Line 1 . . . . . . . . . .

Line 3a—Paid during year. List all Comparing Part XVI-A with Part I. The Plus: Part I, Line 5a, . . . . . . . . .contributions, grants, etc., actually paid sum of the amounts entered on each line

Plus: Expenses of special eventsduring the year, including grants or of lines 1–11 of columns (b), (d), and (e)deducted in computing Partcontributions that are not qualifying of Part XVI-A should equal correspondingXVI-A, line 9 . . . . . . . . . .distributions under section 4942(g). amounts entered on Part I, lines 3–11,

Include current year payments of column (a), and on line 5b as shown Equal: Part I, Line 12, column (a)set-asides treated as qualifying below:




• A historic and continuing relationship line 1b(1)–(6), regardless of its amount, ifPart XVI-B—Relationship exists between the two organizations. it is with a related or affiliatedorganization.of Activities to the A noncharitable exempt organization is

Unrelated organizations. Answerunrelated to the reporting organization if:Accomplishment of “Yes” for any transaction between the• The two organizations share noreporting organization and an unrelatedExempt Purposes element of common control, andnoncharitable exempt organization,• A historic and continuing relationshipTo explain how each amount in columnregardless of its amount, if the reportingdoes not exist between the two(e) of Part XVI-A was related or exemptorganization received less than adequateorganizations.function income, show the line number ofconsideration. There is adequatethe amount in column (e) and give a brief An “element of common control” is consideration when the fair market valuedescription of how each activity reported present when one or more of the officers, of the goods and other assets or servicesin column (e) contributed importantly to directors, or trustees of one organization furnished by the reporting organization isthe accomplishment of the organization’s are elected or appointed by the officers, not more than the fair market value of theexempt purposes (other than by providing directors, trustees, or members of the goods and other assets or servicesfunds for such purposes). Activities that other. An element of common control is received from the unrelated noncharitablegenerate exempt-function income are also present when more than 25% of the exempt organization. The exceptionactivities that form the basis of the officers, directors, or trustees of one described below does not apply toorganization’s exemption from tax. organization serve as officers, directors, transactions for less than adequateor trustees of the other organization.Also, explain any income entered in consideration.

column (e) that is specifically excluded A “historic and continuing relationship” Answer “Yes” for any transactionfrom gross income other than by Code exists when two organizations participate between the reporting organization andsection 512, 513, or 514. If no amount is in a joint effort to achieve one or more an unrelated noncharitable exemptentered in column (e), do not complete common purposes on a continuous or organization if the “amount involved” isPart XVI-B. recurring basis rather than on the basis of more than $500. The “amount involved” isone or more isolated transactions orExample. M, a performing arts the fair market value of the goods,activities. Such a relationship also existsassociation, is primarily supported by services, or other assets furnished by thewhen two organizations share facilities,endowment funds. It raises revenue by reporting organization.equipment, or paid personnel during thecharging admissions to its performances. Exception. If a transaction with anyear, regardless of the length of time theThese performances are the primary unrelated noncharitable exemptarrangement is in effect.means by which the organization organization was for adequateLine 1—Reporting of certain transfersaccomplishes its cultural and educational consideration and the amount involvedand transactions. Generally, report onpurposes. was $500 or less, answer “No” for thatline 1 any transfer to or transaction with a transaction.M reported admissions income in noncharitable exempt organization even ifcolumn (e) of Part XVI-A and explained in Line 1b(3). Answer “Yes” forthe transfer or transaction constitutes thePart XVI-B that these performances are transactions in which the reportingonly connection with the noncharitablethe primary means by which it organization was either the lessor or theexempt organization.accomplishes its cultural and educational lessee.

Related organizations. If thepurposes. Line 1b(4). Answer “Yes” if eithernoncharitable exempt organization is organization reimbursed expensesBecause M also reported interest from related to or affiliated with the reporting incurred by the other.state bonds in column (e) of Part XVI-A, organization, report all direct and indirectM explained in Part XVI-B that such Line 1b(5). Answer “Yes” if eithertransfers and transactions except forinterest was excluded from gross income organization made loans to the other or ifcontributions and grants it received.by Code section 103. the reporting organization guaranteed the

Unrelated organizations. All other’s loans.transfers to an unrelated noncharitablePart XVII—Information Line 1b(6). Answer “Yes” if eitherexempt organization must be reported on

organization performed services orline 1a. All transactions between theRegarding Transfers Tomembership or fundraising solicitationsreporting organization and an unrelatedand Transactions and for the other.noncharitable exempt organization mustLine 1c. Complete line 1c regardless ofbe shown on line 1b unless they meet theRelationships Withwhether the noncharitable exemptexception in the specific instructions forNoncharitable Exempt organization is related to or closelyline 1b.affiliated with the reporting organization.Line 1a—Transfers. Answer “Yes” toOrganizations For purposes of this line, “facilities”lines 1a(1) and 1a(2) if the reportingPart XVII is used to report direct and includes office space and any other land,organization made any direct or indirectindirect transfers to (line 1a) and direct building, or structure whether owned ortransfers of any value to a noncharitableand indirect transactions with (line 1b) leased by, or provided free of charge to,exempt organization.and relationships with (line 2) any other the reporting organization or the

noncharitable exempt organization. A A “transfer” is any transaction or noncharitable exempt organization.“noncharitable exempt organization” is an arrangement whereby one organization Line 1d. Use this schedule to describeorganization exempt under section 501(c) transfers something of value (cash, other the transfers and transactions for which(that is not exempt under section assets, services, use of property, etc.) to “Yes” was entered on lines 1a–c above.501(c)(3)), or a political organization another organization without receiving You must describe each transfer ordescribed in section 527. something of more than nominal value in transaction for which the answer was

return. Contributions, gifts, and grants areFor purposes of these instructions, the “Yes.” You may combine all of the cashexamples of transfers.section 501(c)(3) organization completing transfers (line 1a(1)) to each organization

Part XVII is referred to as the “reporting If the only transfers between the two into a single entry. Otherwise, make aorganization.” organizations were contributions and separate entry for each transfer or

grants made by the noncharitable exempt transaction.A noncharitable exempt organization isorganization to the reporting organization,“related to or affiliated with” the reporting Column (a). For each entry, enter theanswer “No.”organization if either: line number from line 1a–c. For example,

• The two organizations share some Line 1b—Other transactions. Answer if the answer was “Yes” to line 1b(3),element of common control, or “Yes” for any transaction described on enter “b(3)” in column (a).




Column (d). If you need more space, If an officer or employee of the Revenue laws of the United States. Youwrite “see attached” in column (d) and organization prepares the return, the Paid are required to give us the information.use an attached sheet for the description. Preparer’s space should remain blank. If We need it to ensure that you areIf making more than one entry on line 1d, someone prepares the return without complying with these laws and to allow usspecify on the attached sheet which charge, that person should not sign the to figure and collect the right amount oftransfer or transaction you are describing. return. tax. Section 6109 requires returnLine 2—Reporting of certain preparers to provide their identifyingGenerally, anyone who is paid torelationships. Enter on line 2 each numbers on the return.prepare the organization’s tax return mustnoncharitable exempt organization that sign the return and fill in the Paidthe reporting organization is related to or Preparer’s Use Only area. You are not required to provide theaffiliated with, as defined above. If the

information requested on a form that iscontrol factor or the historic and If you have questions about whether a subject to the Paperwork Reduction Actcontinuing relationship factor (or both) is preparer is required to sign the return,unless the form displays a valid OMBpresent at any time during the year, please contact an IRS office.control number. Books or records relatingidentify the organization on line 2 even if

The paid preparer must complete the to a form or its instructions must beneither factor is present at the end ofrequired preparer information and: retained as long as their contents maythe year.• Sign it in the space provided for the become material in the administration ofDo not enter unrelated noncharitablepreparer’s signature (a facsimile signature any Internal Revenue law. The rulesexempt organizations on line 2 even ifis acceptable), and governing the confidentiality of Formtransfers to or transactions with those• Give the organization a copy of the 990-PF are covered in Codeorganizations were entered on line 1. Forreturn in addition to the copy to be filed section 6104.example, if a one-time transfer to anwith the IRS.unrelated noncharitable exempt

organization was entered on line 1a(2), The time needed to complete and fileIf the box for question 15 of Part VII-Ado not enter the organization on line 2. this form will vary depending on individualis checked (section 4947(a)(1)Column (b). Enter the exempt circumstances. The estimated averagenonexempt charitable trust filing Form

category of the organization; for example, 990-PF instead of Form 1041), the paid time is:“501(c)(4).” preparer must also enter his or her social Recordkeeping . . . . . . . . 140 hr., 37 min.Column (c). In most cases, a simple security number or, if applicable, PTINdescription, such as “common directors” and employer identification number in the Learning about the law oror “auxiliary of reporting organization” will spaces provided. Otherwise, do not enter the form . . . . . . . . . . . . . 28 hr., 15 min.be sufficient. If you need more space, the preparer’s social security or employerwrite “see attached” in column (c) and use identification number. Preparing the form . . . . . . 33 hr., 39 min.an attached sheet to describe the

Caution. The IRS is notrelationship. If you are entering more than Copying, assembling, andauthorized to redact the paidone organization on line 2, identify which sending the form to the IRS 32 min.preparer’s SSN if such SSN isorganization you are describing on the CAUTION

!entered on the paid preparer’s block.attached sheet.

If you have comments concerning theBecause Form 990-PF is a publiclyaccuracy of these time estimates ordisclosable document, any informationSignature

entered on this block will be publicly suggestions for making this form simpler,The return must be signed by thedisclosed (see General Instruction Q). we would be happy to hear from you. Youpresident, vice president, treasurer,Accordingly, any paid preparer whose can write to the Internal Revenue Service,assistant treasurer, chief accountingidentifying number must be listed on Form Tax Products Coordinating Committee,officer, or other corporate officer (such as990-PF may wish to apply for and obtain SE:W:CAR:MP:T:T:SP, 1111 Constitutiontax officer) who is authorized to sign. Aa PTIN using Form W-7P, Application for Ave. NW, IR-6526, Washington, DCreceiver, trustee, or assignee must signPreparer Tax Identification Number.any return that he or she is required to file 20224. Do not send the tax form to this

for a corporation. If the return is filed for a address. Instead, see When, Where, andPrivacy Act and Paperwork Reductiontrust, it must be signed by the authorized How To File on page 5.Act Notice. We ask for the informationtrustee or trustees. Sign and date theon this form to carry out the Internalform and fill in the signer’s title.




Exclusion Codes

Real property rental income that does notdepend on the income or profits derivedby the person leasing the property and isexcluded by section 512 (b)(3)

16—

General Exceptions Debt-Financed IncomeIncome exempt from debt-financed(section 514) provisions because at least85% of the use of the property is for theorganization’s exempt purposes. (Note:This code is only for income from the15% or less non-exempt purpose use.)(section 514(b)(1)(A))

Income from an activity that is notregularly carried on (section 512(a)(1))

01— 30—

Income from an activity in which labor isa material income-producing factor andsubstantially all (at least 85%) of the workis performed with unpaid labor (section513(a)(1))

02—

17— Rent from personal property leased withreal property and incidental (10% or less)in relation to the combined income fromthe real and personal property (section512(b)(3))

Gross income from mortgaged propertyused in research activities described insection 512(b)(7), (8), or (9) (section514(b)(1)(C))

31—Section 501(c)(3) organization— Incomefrom an activity carried on primarily forthe convenience of the organization’smembers, students, patients, visitors,officers, or employees (hospital parkinglot or museum cafeteria, for example)(section 513(a)(2))

03—

18— Gain or loss from the sale of investmentsand other non-inventory property andfrom certain property acquired fromfinancial institutions that are inconservatorship or receivership (sections512(b)(5) and (16)(A))

19— Gain or loss from the lapse or terminationof options to buy or sell securities or realproperty, and on options and from theforfeiture of good-faith deposits for thepurchase, sale, or lease of investment realestate (section 512(b)(5))

Gross income from mortgaged propertyused in any activity described in section513(a)(1), (2), or (3) (section 514(b)(1)(D))

32—

20— Income from research for the UnitedStates; its agencies or instrumentalities;or any state or political subdivision(section 512(b)(7))

Section 501(c)(4) local association ofemployees organized before May 27,1969— Income from the sale ofwork-related clothes or equipment anditems normally sold through vendingmachines; food dispensing facilities; orsnack bars for the convenience ofassociation members at their usual placesof employment (section 513(a)(2))

04— Income from mortgaged property(neighborhood land) acquired for exemptpurpose use within 10 years (section514(b)(3))

33—

21— Income from research conducted by acollege, university, or hospital (section512(b)(8))

Income from mortgaged propertyacquired by bequest or devise (applies toincome received within 10 years from thedate of acquisition) (section 514(c)(2)(B))

34—

22— Income from research conducted by anorganization whose primary activity isconducting fundamental research, theresults of which are freely available to thegeneral public (section 512(b)(9))

Income from the sale of merchandise,substantially all of which (at least 85%)was donated to the organization (section513(a)(3))

05—Income from mortgaged propertyacquired by gift where the mortgage wasplaced on the property more than 5 yearspreviously and the property was held bythe donor for more than 5 years (appliesto income received within 10 years fromthe date of gift (section 514(c)(2)(B))

35—

23— Income from services provided underlicense issued by a federal regulatoryagency and conducted by a religiousorder or school operated by a religiousorder, but only if the trade or businesshas been carried on by the organizationsince before May 27, 1959 (section 512(b)(15))

Specific ExceptionsSection 501(c)(3), (4), or (5) organizationconducting an agricultural or educationalfair or exposition— Qualified publicentertainment activity income (section513(d)(2))

06— Income from property received in returnfor the obligation to pay an annuitydescribed in section 514(c)(5)

36—

Income from mortgaged property thatprovides housing to low and moderateincome persons, to the extent themortgage is insured by the FederalHousing Administration (section 514(c)(6)).(Note: In many cases, this would beexempt function income reportable incolumn (e). It would not be so in the caseof a section 501(c)(5) or (6) organization,for example, that acquired the housing asan investment or as a charitable activity.)

37—

Foreign OrganizationsSection 501(c)(3), (4), (5), or (6)organization—Qualified convention andtrade show activity income (section513(d)(3))

07—

Foreign organizations only—Income froma trade or business NOT conducted in theUnited States and NOT derived fromUnited States sources (patrons) (section512(a)(2))

24—Income from hospital services describedin section 513(e)

08—

Income from noncommercial bingo gamesthat do not violate state or local law(section 513(f))

09—

Social Clubs and VEBAsSection 501(c)(7), (9), or (17)organization—Non-exempt functionincome set aside for a charitable, etc.,purpose specified in section 170(c)(4)(section 512(a)(3)(B)(i))

25—Income from games of chance conductedby an organization in North Dakota(section 311 of the Deficit Reduction Actof 1984, as amended)

10—Income from mortgaged real propertyowned by: a school described in section170(b)(1)(A)(ii); a section 509(a)(3) affiliatedsupport organization of such a school; asection 501(c)(25) organization; or by apartnership in which any of the aboveorganizations owns an interest if therequirements of section 514(c)(9)(B)(vi) aremet (section 514(c)(9))

38—

Section 501(c)(7), (9), or (17)organization—Proceeds from the sale ofexempt function property that was or willbe timely reinvested in similar property(section 512(a)(3)(D))

26—

Section 501(c)(12) organization— Qualifiedpole rental income (section 513(g)) and/ormember income (described in section501(c)(12)(H))

11—

Income from the distribution of low-costarticles in connection with the solicitationof charitable contributions (section 513(h))

12—

Section 501(c)(9) or (17) organization—Nonfunction income set aside for thepayment of life, sick, accident, orother benefits (section 512(a)(3)(B)(ii))

27—

Special Rules

Income from the exchange or rental ofmembership or donor list with anorganization eligible to receive charitablecontributions by a section 501(c)(3)organization; by a war veterans’organization; or an auxiliary unit or societyof, or trust or foundation for, a warveterans’ post or organization (section513(h))

13—Section 501(c)(5) organization—Farmincome used to finance the operation andmaintenance of a retirement home,hospital, or similar facility operated by theorganization for its members on propertyadjacent to the farm land (section1951(b)(8)(B) of Public Law 94-455)

39—

Veterans’ OrganizationsSection 501(c)(19) organization—Payments for life, sick, accident, or healthinsurance for members or theirdependents that are set aside for thepayment of such insurance benefits or fora charitable, etc., purpose specified insection 170(c)(4) (section 512(a)(4))

28—

Trade or Business41— Gross income from an unrelated activity

that is regularly carried on but, in light ofcontinuous losses sustained over anumber of tax periods, cannot beregarded as being conducted with themotive to make a profit (not a trade orbusiness)

Modifications and ExclusionsDividends, interest, payments withrespect to securities loans, annuities,income from notional principal contracts,other substantially similar income fromordinary and routine investments, andloan commitment fees, excluded bysection 512(b)(1)

14—

Section 501(c)(19) organization— Incomefrom an insurance set-aside (see code 28above) that is set aside for payment ofinsurance benefits or for a charitable, etc.,purpose specified in section 170(c)(4)(Regs. 1.512(a)–4(b)(2))

29—

Royalty income excluded by section512(b)(2)

15—

Annual dues, not exceeding $145 (subjectto inflation), paid to a section 501(c)(5)agricultural or horticultural organization(section 512(d))

40—

OtherReceipt of qualified sponsorshippayments described in section 513(i)

42—

Exclusion of any gain or loss from thequalified sale, exchange, or otherdisposition of any qualifying brownfieldproperty (section 512(b)(19))

43—




Index

A Private operating Gross receipts . . . . . . . . . . . . . . . . . 6 Qfoundation . . . . . . . . . . . . . . . . 2Accounting methods . . . . . . . . . . . 5 Qualifying distributions . . . . . . . 12,

Program-related 13, 25Accounting period . . . . . . . . . . . . . 5 Iinvestment . . . . . . . . . . . . . . . 24 Amounts set aside . . . . . . . . . . 26Adjusted net income . . . . . . . . . . 12 Income test . . . . . . . . . . . . . . . . . . 27Qualifying distributions . . . . . . 25 Qualifying distributions (see theAmended return . . . . . . . . . . . . 5, 19 Incomplete return:Significant disposition . . . . . . . 10 instructions for Part XII for anAmended returns, state . . . . . . . . 4 How to avoid . . . . . . . . . . . . . . . . 2Substantial contraction . . . . . 10 explanation of qualifyingAnnual return: Penalties . . . . . . . . . . . . . . . . . . . 6Taxable private distributions) for anyAmended . . . . . . . . . . . . . . . . . . . 5 Inventory . . . . . . . . . . . . . . . . . . . . . 13foundation . . . . . . . . . . . . . . . . 2 year. . . . . . . . . . . . . . . . . . . . . . . 13Copies to state officials . . . . . . 5 Depository methods . . . . . . . . . . . 6Extension for filing . . . . . . . . . . . 5 Electronic deposit . . . . . . . . . . . 6 LFailure to file timely or RTax deposit coupon . . . . . . . . . 6 Large organization . . . . . . . . . . . . . 6completely . . . . . . . . . . . . . . . . 6 Rounding . . . . . . . . . . . . . . . . . . . . 10Depreciation . . . . . . . . . . . . . . . . . 14 Liquidation . . . . . . . . . . . . . . . . . . . . 9Purpose of form . . . . . . . . . . . . . 2

Disqualified person . . . . . . . . . . . . 2State reportingSDisregarded entity . . . . . . . . . . 2, 22requirements . . . . . . . . . . . . . . 4 M Schedule B (Form 990, 990–EZ,Dissolution . . . . . . . . . . . . . . . . . . . . 9Termination . . . . . . . . . . . . . . . . 10

Minimum investment or 990–PF) . . . . . . . . . . . . . . . . 12When to file . . . . . . . . . . . . . . . . . 5 Distributable amount . . . . . . . . . . 25return . . . . . . . . . . . . . . . . . . . . . . 24 Self-dealing . . . . . . . . . . . . . . . . . . 20Where to file . . . . . . . . . . . . . . . . 5Short tax year . . . . . . . . . . . . . . 25Which parts to complete . . . . . 2 Signature . . . . . . . . . . . . . . . . . . . . 30E

Assets test . . . . . . . . . . . . . . . . . . . 27 Significant disposition . . . . . . . . . 10EFTPS . . . . . . . . . . . . . . . . . . . . . . . 6 NAttachments . . . . . . . . . . . . . . . . . 10 Significant involvement . . . . . . . 23Elections . . . . . . . . . . 18, 25, 26, 27 Net investment income . . . . 11, 15 Special payment option . . . . . . . . 7Electronic deposit . . . . . . . . . . . . . 6 Business meals . . . . . . . . . . . . 14 State reportingB Endowment test . . . . . . . . . . . . . . 27 Noncharitable exempt requirements . . . . . . . . . . . . . . . . 4Business meals . . . . . . . . . . . . . . 14 Estimated tax . . . . . . . . . . . . . . . . . 6 organization . . . . . . . . . . . . . . . . 29 Amended returns . . . . . . . . . . . . 4Penalty . . . . . . . . . . . . . . . . . . . . . 6 Nonexempt charitable trust . . . . . 2, Substantial contraction . . . . . . 9, 10

Excise tax based on investmentC 6, 20 Substantial contributor . . . . . . . . 19income:Capital gains and losses: Nonoperating private Support test . . . . . . . . . . . . . . . . . . 27Domestic exempt privateBasis . . . . . . . . . . . . . . . . . . . . . . 18 foundation . . . . . . . . . . . 2, 12, 13foundations . . . . . . . . . . . . . . 18Gains . . . . . . . . . . . . . . . . . . . . . . 17

Domestic taxable private TLosses . . . . . . . . . . . . . . . . . . . . 18Ofoundations and section Tax payment methods:Charitable donation:

4947(a)(1) nonexempt Other expenses . . . . . . . . . . . . . . 14 Depository method . . . . . . . . . . 6Substantiation of . . . . . . . . . . . 12charitable trusts . . . . . . . . . . 18 Special payment option . . . . . . 7Children . . . . . . . . . . . . . . . . . . . . . . 1 Foreign organizations . . . . . . . 18 Taxable private foundation . . . . . 2,PContributions . . . . . . . . . . . . . . . . . 15 Exempt operating foundation 6Penalties:Copy of old return . . . . . . . . . . . . . 5 qualification . . . . . . . . . . . . . . . . 18 Termination . . . . . . . . . . . . . . . . 9, 11Against responsibleCurrency . . . . . . . . . . . . . . . . . . . . . 10 Extension for filing . . . . . . . . . . . . . 5 Annual return . . . . . . . . . . . . . . 10person . . . . . . . . . . . . . . . . . . . . 6

Special rules . . . . . . . . . . . 10, 30Estimated tax . . . . . . . . . . . . . . . 6D Failure to disclose quid pro quo Travel . . . . . . . . . . . . . . . . . . . . . . . 14FDefinitions . . . . . . . . . . . . . . . . . . . . 2 contributions . . . . . . . . . . . . . 13Failure to file timely or

Disqualified person . . . . . . . . . . 2 Failure to file timely orcompletely . . . . . . . . . . . . . . . . . . 6 WDistributable amount . . . . . . . . 25 completely . . . . . . . . . . . . . . . . 6Failure to pay tax when due . . . . 6 When to file . . . . . . . . . . . . . . . . . . . 5Foundation manager . . . . . . . . 2 Failure to pay timely . . . . . . . . . 6Federal tax deposit coupon . . . . 6 Extension . . . . . . . . . . . . . . . . . . . 5Gross investment Photographs of missingFiling extension . . . . . . . . . . . . . . . 5 Where to file . . . . . . . . . . . . . . . . . . 5income . . . . . . . . . . . . . . . . . . 11 children . . . . . . . . . . . . . . . . . . . . . 1Foreign organizations . . . . . . 9, 11,Net investment income . . . . . 11 Which parts to complete . . . . . . . 2Private foundation . . . . . . . . . . . . . 218Noncharitable exempt Who must file . . . . . . . . . . . . . . . . . 2Private operatingFoundation manager . . . . . . . . . . . 2organization . . . . . . . . . . . . . 29 foundation . . . . . . . . . . . 2, 12, 27 ■Nonexempt charitable

Program services . . . . . . . . . . . . . 28trust . . . . . . . . . . . . . . . . . . . . . . 2 G Program-relatedNonoperating privateGifts . . . . . . . . . . . . . . . . . . . . . . . . . 15 investment . . . . . . . . . . . . . 24, 25foundation . . . . . . . . . . . . . . . . 2Grants . . . . . . . . . . . . . . . . . . . . . . . 15 Public inspection . . . . . . . . . . . . . 20Private foundation . . . . . . . . . . . 2Gross investment income . . . . . 11 Relief . . . . . . . . . . . . . . . . . . . . . . . 9Gross profit . . . . . . . . . . . . . . . . . . 13


2009 instruction 990-pf - internal revenue service · page 1 of 32 instructions for form 990-pf...

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